[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: 19CFR181.93]



[Page 387-390]

 

                        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.  181.93  Submission of advance ruling requests.



    (a) Form. A request for an advance ruling should be written in the 

English language and in the form of a letter. For any subject matter 

specified in Sec.  181.92(b)(6) (i), (v), (vi), (vii), (viii) or (ix) of 

this part, the request may be directed either to the Commissioner of 

Customs, Attention: Office of Regulations and Rulings, Washington, DC 

20229, or to the National Commodity Specialist Division, United States 

Customs Service, 6 World Trade Center, New York, NY 10048. For any 

subject matter specified in Sec.  181.92(b)(6)(ii), (iii) or (iv) of 

this part, the request must be directed to the Commissioner of Customs, 

Attention: Office of Regulations and Rulings, Washington, DC 20229.

    (b) Content--(1) General. Each request for an advance ruling must 

identify the specific subject matter under Sec.  181.92(b)(6) of this 

part to which the request relates, must contain a complete statement of 

all relevant facts relating to the NAFTA transaction and must state that 

the information presented is accurate and complete. The following facts 

must be included: the names, addresses, and other identifying 

information of all interested parties (if known); the name of the port 

or place at which any good involved in the transaction will be imported 

or which will otherwise have jurisdiction with respect to the act or 

activity described in the transaction; and a description of the 

transaction itself, appropriate in detail to the subject matter of the 

requested advance ruling. Where the request for an advance ruling is 

submitted by or on behalf of the importer of the good involved in the 

transaction, the request must include the name and address of the 

exporter and, if known, producer of the good. Where the request for an 

advance ruling is submitted by or on behalf of the exporter of the good 

involved in the transaction, the request must include the name and 

address of the producer and importer of the good, if known. Where the 

request for an advance ruling is submitted by or on behalf of the 

producer of the good involved in the transaction, the request must 

include the name and address of the exporter and importer of the good, 

if known. In addition, where relevant to the issue that is the subject 

of the request for an advance ruling, and regardless of the specific 

nature of the advance ruling requested, the request must include:

    (i) A copy of any advance ruling or other ruling with respect to the 

tariff classification of the good that has been issued by Customs to the 

person submitting the request; or

    (ii) Sufficient information to enable Customs to classify the good 

where no advance ruling or other ruling with respect to the tariff 

classification of the good has been issued by Customs to the person 

submitting the request. Such



[[Page 388]]



information includes a full description of the good, including, where 

relevant, the composition of the good, a description of the process by 

which the good is manufactured, a description of the packaging in which 

the good is contained, the anticipated use of the good and its 

commercial, common or technical designation, and product literature, 

drawings, photographs or schematics.

    (2) Description of transaction--(i) General. The prospective Customs 

transaction to which the advance ruling request relates must be 

described in sufficient detail to permit proper application of the 

relevant NAFTA provisions.

    (ii) Tariff change rulings--(A) General. If the transaction involves 

the importation of a good or material for which a ruling is requested as 

to whether a change in tariff classification has occurred, the request 

should set forth: The principal or chief use of the good or material in 

the United States and the commercial, common, or technical designation 

of the good or material; if the good or material is composed of two or 

more substances, the relative quantity (by both weight and by volume) 

and value of each substance; any applicable special invoicing 

requirements set forth in part 141 of this chapter (if known); and any 

other information which may assist in determining the appropriate tariff 

classification of the good or material. The advance ruling request 

should also note, whenever germane, the purchase price of the good or 

material, and its approximate selling price in the United States. Each 

individual request for an advance ruling must be limited to five 

merchandise items, all of which must be of the same class or kind. Only 

NAFTA tariff change rulings will be issued under this subpart. Tariff 

classification rulings which do not involve the application of the NAFTA 

shall be issued under part 177 of this chapter.

    (B) Issues involving a change in tariff classification of a 

material. Where the request for the advance ruling involves the 

application of a rule of origin that requires an assessment of whether 

materials used in the production of an imported good undergo an 

applicable change in tariff classification, the request must list each 

material used in the production of the good and must:

    (1) Identify each material which is claimed to be an originating 

material and provide a complete description of each such material, 

including the basis for the claim as to originating status;

    (2) Identify each material which is a non-originating material, or 

for which the origin is unknown, and provide a complete description of 

each such material, including its tariff classification if known; and

    (3) Describe all processing operations employed in the production of 

the good, the location of each operation and the sequence in which the 

operations occur.

    (iii) NAFTA rulings on regional value content. NAFTA advance ruling 

requests, if involving the issue of whether a good satisfies a regional 

value content requirement under the transaction value method or under 

the net cost method, or under both methods, as provided for in General 

Note 12, HTSUS, and in the appendix to this part, must specify each 

method under which eligibility is sought. Where the transaction value 

method is specified, the advance ruling request must include: 

information sufficient to calculate the transaction value of the good in 

accordance with schedule II of the appendix to this part with respect to 

the transaction of the producer of the good, adjusted to an F.O.B. 

basis; information sufficient to calculate the value of each non-

originating material, or material the origin of which is unknown, that 

is used by the producer in the production of the good in accordance with 

the provisions of section 7 and, where applicable, section 6(10) of the 

appendix to this part; a complete description of each material that is 

claimed to be an originating material and that is used in the production 

of the good, including the basis for the claim as to originating status; 

information sufficient to permit an examination of the factors 

enumerated in schedule III or VIII of the appendix to this part where 

the advance ruling request involves an issue of whether, with respect to 

the good or material under the applicable schedule, the transaction 

value is acceptable; and information sufficient for any



[[Page 389]]



other circumstance to make any determination relevant to the application 

of the regional value content requirement to the good. Where the net 

cost method is specified, the advance ruling request must include: a 

list of all product, period and other costs relevant to determining the 

total cost of the good as defined in the appendix to this part; a list 

of all excluded costs to be subtracted from the total cost of the good 

as provided in the appendix to this part; information sufficient to 

calculate the value of each non-originating material, or material the 

origin of which is unknown, that is used in the production of the good, 

in accordance with section 7 of the appendix to this part; the basis for 

any allocation of costs in accordance with schedule VII of the appendix 

to this part; the period over which the net cost calculation is to be 

made; and any other information relevant to determining the appropriate 

value of any cost under this part. Where the advance ruling request 

concerns only the calculation of an element of a regional value content 

formula, and with regard to the information specified in paragraphs 

(b)(1) through (b)(5) of this section, the request need only contain the 

following: the information in paragraph (b)(1), other than the 

information specified in paragraph (b)(1)(i) or (b)(1)(ii); the 

information in paragraph (b)(5); and any information in this paragraph 

(b)(2)(iii) which is relevant to the issue that is the subject of the 

request.

    (iv) NAFTA rulings on producer materials. W here the advance ruling 

request involves an issue with respect to an intermediate material under 

Article 402(10) of the NAFTA (see section 7(4) of the appendix to this 

part), the request must contain sufficient information to determine the 

origin and value of the material in accordance with Article 402(11) of 

the NAFTA (see section 7(6) of the appendix to this part). Where the 

advance ruling request is submitted by a Canadian or Mexican producer of 

a material under Sec.  181.92(b)(5)(iii) of this part and concerns only 

the origin of such material, and with regard to the information 

specified in paragraphs (b)(1) through (b)(5) of this section, the 

request need only include the following: the information in paragraph 

(b)(1), including any information specified in paragraph (b)(1)(i) or 

(b)(1)(ii) which is relevant to the issue that is the subject of the 

request; any information in paragraph (b)(2)(ii)(B) which is relevant to 

the issue that is the subject of the request; a sample as provided for 

in paragraph (b)(3) if relevant to the issue that is the subject of the 

request; and the information in paragraph (b)(5).

    (3) Samples. Each request for an advance ruling should be 

accompanied by photographs, drawings, or other pictorial representations 

of the good and, whenever possible, by a sample of the good unless a 

precise description of the good is not essential to the advance ruling 

requested. Any good consisting of materials in chemical or physical 

combination for which a laboratory analysis has been prepared by or for 

the manufacturer should include a copy of that analysis, flow charts, 

CAS number, and related information. A sample submitted in connection 

with a request for an advance ruling becomes a part of the Customs file 

in the matter and will be retained until the advance ruling is issued or 

the advance ruling request is otherwise disposed of. A sample should 

only be submitted with the understanding that all or a part of it may be 

damaged or consumed in the course of examination, testing, analysis, or 

other actions undertaken in connection with the advance ruling request.

    (4) Related documents. If the question or questions presented in the 

advance ruling request directly relate to matters set forth in any 

invoice, contract, agreement, or other document, a copy of the document 

must be submitted with the request. (Original documents should not be 

submitted inasmuch as any documents or exhibits furnished with the 

advance ruling request become a part of the Customs file in the matter 

and cannot be returned.) The relevant facts reflected in any documents 

submitted, and an explanation of their bearing on the question or 

questions presented, must be expressly set forth in the advance ruling 

request.

    (5) Prior or current transactions--(i) General. Each request for an 

advance ruling must state:



[[Page 390]]



    (A) Whether, to the knowledge of the person submitting the request, 

the same transaction or issue, or one identical to it, has ever been 

considered, or is currently being considered by any Customs office;

    (B) Whether, to the knowledge of the person submitting the request, 

the issue involved has ever been, or is currently, the subject of:

    (1) Review by the United States Court of International Trade, the 

United States Court of Appeals for the Federal Circuit, or any court of 

appeal therefrom, or review by a judicial or quasi-judicial body in 

Canada or Mexico;

    (2) A verification of origin performed in the United States, Canada 

or Mexico;

    (3) An administrative appeal in the United States, Canada or Mexico; 

or

    (4) A request for an advance ruling under this subpart, or a request 

for an advance ruling in Canada or Mexico under an appropriate authority 

referred to in Sec.  181.76(e)(1) of this part;

    (C) The status or disposition of any matter on which an affirmative 

statement is made under paragraph (b)(5)(i)(B) of this section; and

    (D) Whether the transaction described in the advance ruling request 

is but one of a series of similar and related transactions.

    (ii) Change in status of transaction. If a prospective transaction 

which is the subject of an advance ruling request becomes a current 

transaction, the person who submitted the request shall so notify the 

office processing the request.

    (6) Statement of position. If the request for an advance ruling asks 

that a particular determination or conclusion be reached in the advance 

ruling letter, a statement must be included in the request setting forth 

the basis for that determination or conclusion, together with a citation 

of all relevant supporting authority.

    (7) Privileged or confidential information. Information which is 

claimed to constitute trade secrets or privileged or confidential 

commercial or financial information regarding the business transactions 

of private parties the disclosure of which would cause substantial harm 

to the competitive position of the person making the request (or of 

another interested party) must be identified clearly, and the reasons 

such information should not be disclosed, including, where applicable, 

the reasons the disclosure of the information would prejudice the 

competitive position of the person making the request (or of another 

interested party), must be set forth. An advance ruling will not be 

issued until all trade secret, privilege or confidentiality issues are 

resolved (see Sec.  181.99(a)(3) of this part).

    (c) Signing; instruction as to reply. The request for an advance 

ruling must be signed by a person authorized to make the request, as 

described in Sec.  181.92(b)(5) of this part. An advance ruling 

requested by a principal or authorized agent may direct that the advance 

ruling letter be addressed to the other.

    (d) Requests for immediate consideration. Customs will normally 

process requests for advance rulings in the order they are received and 

as expeditiously as possible, as specified in Sec.  181.99 of this part. 

However, a request that a particular matter be given consideration ahead 

of its regular order, if made in writing at the time the request is 

submitted, or subsequent thereto, and showing a clear need for such 

treatment, will be given consideration as the particular circumstances 

warrant and permit. Requests for special consideration made by telegram 

or electronic transmission will be treated in the same manner as 

requests made by letter, but advance rulings will not be issued by 

telegram or electronic transmission. A telegram or electronic 

transmission must be followed up with a signed original within 14 

calendar days of the submission of the telegram or electronic 

transmission. In no event can any assurance be given that a particular 

request for an advance ruling will be acted upon by the time requested.



[T.D. 95-68, 60 FR 46364, Sept. 6, 1995, as amended by T.D. 99-64, 64 FR 

43267, Aug. 10, 1999]