[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: 19CFR181.92]



[Page 385-387]

 

                        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.  181.92  Definitions and general NAFTA advance ruling practice.



    (a) Definitions. For purposes of this subpart:

    (1) An advance ruling is a written statement issued by the 

Headquarters Office or the National Commodity Specialist Division or by 

such other office as designated by the Commissioner of Customs that 

interprets and applies the provisions of NAFTA to a specific set of 

facts involving any subject matter specified in Sec.  181.92(b)(6) of 

this part. An ``advance ruling letter'' is an advance ruling issued in 

response to a written request and set forth in a letter addressed to the 

person making the request or his designee. A ``published advance 

ruling'' is an advance ruling which has been published in full text in 

the Customs Bulletin.

    (2) An authorized agent is a person expressly authorized by a 

principal to act on his or her behalf. An advance ruling requested by an 

attorney or other person acting as an agent must include a statement 

describing the authority under which the request is made. With the 

exception of attorneys whose authority to represent is known, any person 

appearing before Customs as an agent in connection with an advance 

ruling request may be required to present evidence of his or her 

authority to represent the principal. The foregoing requirements will 

not apply to an individual representing his or her full-time employer or 

to a bona-fide officer, director or other qualified representative of a 

corporation, association, or organized group.

    (3) The term Headquarters Office, means the Office of Regulations 

and Rulings at Headquarters, United States Customs Service, Washington, 

DC.

    (4) An information letter is a written statement issued by the 

Headquarters Office or the National Commodity Specialist Division or by 

such other office as designated by the Commissioner of Customs that does 

no more than call attention to a well-established interpretation of 

principles under the NAFTA, without applying it to a specific set of 

facts. If Customs believes that general information may be of some 

benefit to the person making the request, an information letter may be 

issued in response to a request for an advance ruling when:

    (i) The request suggests that general information, rather than an 

advance ruling, is actually being sought;

    (ii) The request is incomplete or otherwise fails to meet the 

requirements set forth in this subpart; or

    (iii) The requested advance ruling cannot be issued for any other 

reason.

    (5) A NAFTA transaction is an act or activity to which the NAFTA 

provisions apply. A ``prospective'' NAFTA transaction is one that is 

merely contemplated or is currently being undertaken but has not 

resulted in any arrival or in the filing of any entry or entry summary 

or other document or in any other act so as to bring the transaction, or 

any part of it, under the jurisdiction of any Customs office. A 

``current'' NAFTA transaction is one which is presently under 

consideration by a field office of Customs. A ``completed'' NAFTA 

transaction is one which has been acted upon by a Customs field office 

and with respect to which that office has issued a determination which 

is final in nature, but is (or was) subject to appeal, petition, protest 

or other review as provided in



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the applicable Customs laws and regulations. An ``ongoing'' NAFTA 

transaction is a series of identical, recurring transactions, consisting 

of current and completed transactions where future transactions are 

contemplated.

    (6) The term National Commodity Specialist Division means the 

National Commodity Specialist Division, United States Customs Service, 

New York, New York.

    (b) General advance ruling practice. An advance ruling may be 

requested under the provisions of this subpart with respect to 

prospective NAFTA transactions. An advance ruling will be based on the 

facts and circumstances presented by the requester.

    (1) Prospective NAFTA transactions. It is in the interest of the 

sound administration of the NAFTA that persons engaging in any 

transaction affected by NAFTA fully understand the consequences of that 

transaction prior to its consummation. For this reason, Customs will 

give full and careful consideration to written requests from importers 

in the United States and exporters or producers in Canada or Mexico for 

advance rulings or information setting forth, with respect to a 

specifically described transaction, a definitive interpretation of 

applicable law or other appropriate information.

    (2) Current or ongoing NAFTA transactions. A question arising in 

connection with a NAFTA transaction already before a Customs field 

office by reason of arrival, entry or otherwise will be resolved by that 

office in accordance with the principles and precedents previously 

announced by the Headquarters Office. If such a question cannot be 

resolved on the basis of clearly established rules set forth in the 

NAFTA or the regulations thereunder, or in applicable Treasury 

Decisions, rulings, opinions, or court decisions published in the 

Customs Bulletin, that field office may, if it believes it appropriate, 

forward the question to the Headquarters Office for consideration.

    (3) Completed NAFTA transactions. A question arising in connection 

with an entry of merchandise which has been liquidated, or in connection 

with any other completed NAFTA transaction, may not be the subject of an 

advance ruling request under this subpart.

    (4) Oral advice. Customs will not issue an advance ruling in 

response to an oral request. Oral opinions or advice of Customs 

personnel are not binding on Customs. However, oral inquiries may be 

made to Customs offices regarding existing advance rulings, the scope of 

such advance rulings, the types of transactions with respect to which 

Customs will issue advance rulings, the scope of the advance rulings 

which may be issued, or the procedures to be followed in submitting 

advance ruling requests, as prescribed in this subpart.

    (5) Who may request an advance ruling. An advance ruling may be 

requested by any of the following persons (individuals, corporations, 

partnerships, associations, or other entities or groups) having a direct 

and demonstrable interest in the question or questions presented in the 

advance ruling request, or by the authorized agent of any such person:

    (i) An importer in the United States;

    (ii) An exporter or a producer of a good in Canada or Mexico; or

    (iii) A Canadian or Mexican producer of a material that is used in 

the production of a good imported into the United States, but only with 

regard to that material and only in regard to a matter described in 

paragraphs (b)(6)(i) through (v) and (vii) of this section.

    (6) Subject matter of advance rulings. Customs shall issue advance 

rulings under this subpart concerning the following:

    (i) Whether materials imported from a country other than the United 

States, Canada or Mexico and used in the production of a good undergo an 

applicable change in tariff classification set forth in General Note 12, 

HTSUS, as a result of production occurring entirely in the United 

States, Canada and/or Mexico;

    (ii) Whether a good satisfies a regional value-content requirement 

under the transaction value method or under the net cost method as 

provided for in General Note 12, HTSUS, and in this part;

    (iii) For purposes of determining whether a good satisfies a 

regional value-content requirement under General Note 12, HTSUS, and 

under this



[[Page 387]]



part, the appropriate basis or method for value to be applied by an 

exporter or a producer in Canada or Mexico, in accordance with the 

principles set forth in the appendix to this part, for calculating the 

transaction value of the good or of the materials used in the production 

of the good;

    (iv) For purposes of determining whether a good satisfies a regional 

value-content requirement under General Note 12, HTSUS, and under this 

part, the appropriate basis or method for reasonably allocating costs, 

in accordance with the allocation methods set forth in the appendix to 

this part, for calculating the net cost of the good or the value of an 

intermediate material;

    (v) Whether a good qualifies as an originating good under General 

Note 12, HTSUS, and under the appendix to this part;

    (vi) Whether a good that re-enters the United States after having 

been exported from the United States to Canada or Mexico for repair or 

alteration qualifies for duty-free treatment in accordance with Sec.  

181.64 of this part;

    (vii) Whether the proposed or actual marking of a good satisfies 

country of origin marking requirements under part 134 of this chapter 

and under the Marking Rules set forth in part 102 of this chapter;

    (viii) Whether an originating good qualifies as a good of Canada or 

Mexico under Annex 300-B, Annex 302.2 and Chapter Seven of the NAFTA; 

and

    (ix) Whether a good is a qualifying good under Chapter Seven of the 

NAFTA.