19 CFR Part 10 — Articles Conditionally Free, Subject to a Reduced Rate, Etc.

PART 10—ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC. Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 1498, 1508, 1623, 1624, 4513. Section 10.17 also issued under 19 U.S.C. 1401a, 1402; Sections 10.25 and 10.26 also issued under 19 U.S.C. 3592; Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322; Section 10.41b also issued under 19 U.S.C. 1202 (Chapter 98, Subchapter III, U.S. Note 3, HTSUS); Section 10.53 also issued under 16 U.S.C. 1521, et seq.; Section 10.59 also issued under 19 U.S.C. 1309, 1317; Sections 10.61, 10.62, 10.63, 10.64, 10.64a also issued under 19 U.S.C. 1309; Sections 10.62a, 10.65 also issued under 19 U.S.C. 1309, 1317, 1555, 1556, 1557, 1646a; § 10.62b also issued under 19 U.S.C. 1557; Sections 10.70, 10.71 also issued under 19 U.S.C. 1486; Sections 10.80, 10.81, 10.82, 10.83 also issued under 19 U.S.C. 1313 (e) and (i); Section 10.91 also issued under Pub. L. 106-476 (114 Stat. 2101), sections 1434, 1435; Section 10.121 also issued under 19 U.S.C. 2501. Sections 10.171 through 10.178a also issued under 19 U.S.C. 2461 et seq.; Section 10.183 also issued under 19 U.S.C. 1202 (General Note 6, HTSUS); Sections 10.191 through 10.199 also issued under 19 U.S.C. 2701 et seq.; Sections 10.201 through 10.207 also issued under 19 U.S.C. 3203; Sections 10.211 through 10.217 also issued under 19 U.S.C. 3721; Sections 10.221 through 10.228 and §§ 10.231 through 10.237 also issued under 19 U.S.C. 2701 et seq. Sections 10.241 through 10.248 and §§ 10.251 through 10.257 also issued under 19 U.S.C. 3203. Sections 10.401 through 10.490 also issued under Pub. L. 108-77, 117 Stat. 909 (19 U.S.C. 3805 note). Sections 10.501 through 10.570 also issued under 19 U.S.C. 1202 (General Note 25, HTSUS) and Pub. L. 108-78, 117 Stat. 948 (19 U.S.C. 3805 note). Sections 10.581 through 10.625 also issued under 19 U.S.C. 1202 (General Note 29, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 109-53, 119 Stat. 462 (19 U.S.C. 4001 note). Section 10.699 also issued under Pub. L. 109-53, 119 Stat. 462. Sections 10.701 through 10.712 also issued under 19 U.S.C. 1202 (General Note 18, HTSUS) and Pub. L. 107-43, 115 Stat. 243 (19 U.S.C. 2112 note). Sections 10.721 through 10.748 also issued under 19 U.S.C. 1202 (General Note 28, HTSUS) and Pub. L. 108-286, 118 Stat. 919 (19 U.S.C. 3805 note). Sections 10.761 through 10.789 also issued under Pub. L. 108-302, 118 Stat. 1103 (19 U.S.C. 3805 note). Sections 10.801 through 10.829 also issued under 19 U.S.C. 1202 (General Note 30, HTSUS) and Pub. L. 109-169, 119 Stat. 3581 (19 U.S.C. 3805 note). Sections 10.841 through 10.850 also issued under 19 U.S.C. 2703A. Sections 10.861 through 10.890 also issued under 19 U.S.C. 1202 (General Note 31, HTSUS) and Pub. L. 109-283, 120 Stat. 1191 (19 U.S.C. 3805 note). Sections 10.901 through 10.934 also issued under 19 U.S.C. 1202 (General Note 32, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 110-138, 121 Stat. 1455 (19 U.S.C. 3805 note). Sections 10.1001 through 10.1034 also issued under 19 U.S.C. 1202 (General Note 33, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-41, 125 Stat. 428 (19 U.S.C. 3805 note). Sections 10.2001 through 10.2034 also issued under 19 U.S.C. 1202 (General Note 35, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-43, 125 Stat. 497 (19 U.S.C. 3805 note). Sections 10.3001 through 10.3034 also issued under 19 U.S.C. 1202 (General Note 34, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-42, 125 Stat. 462 (19 U.S.C. 3805 note). Source: 28 FR 14663, Dec. 31, 1963, unless otherwise noted. Editorial Note: Nomenclature changes to part 10 appear by CBP Dec. 16-26, 81 FR 93010, Dec. 20, 2016. Subpart A—General Provisions Articles Exported and Returned § 10.1 Domestic products; requirements on entry. (a) Except as otherwise provided for in paragraph (g), (h), (i) or (j) of this section or elsewhere in this part or in § 145.35 of this chapter, the following documents must be filed in connection with the entry of articles in a shipment valued over $2,500 and claimed to be free of duty under subheading 9801.00.10 or 9802.00.20, Harmonized Tariff Schedule of the United States (HTSUS): (1) A declaration by the foreign shipper in substantially the following form: I, ______________________, declare that to the best of my knowledge and belief the articles herein specified were exported from the United States, from the port of ________________ on or about ________________, 20____, and that they are returned without having been advanced in value or improved in condition by any process of manufacture or other means. Marks Number Quantity Description Value, in U.S. coin (Date) (Signature) (Address) (Capacity) (2) A declaration by the owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry. If the owner or ultimate consignee is a corporation, such declaration may be signed by the president, vice president, secretary, or treasurer of the corporation, or may be signed by any employee or agent of the corporation who holds a power of attorney executed under the conditions outlined in subpart C, part 141 of this chapter and a certification by the corporation that such employee or other agent has or will have knowledge of the pertinent facts. This declaration must be in substantially the following form: I, ______________, declare that the (above) (attached) declaration by the foreign shipper is true and correct to the best of my knowledge and belief, that the articles were manufactured by ________________ (name of manufacturer) located in ________________ (city and state), that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS, and that the articles were exported from the United States without benefit of drawback. (Date) (Address) (Signature) (Capacity) (b) In any case in which the value of the returned articles exceeds $2,500 and the articles are not clearly marked with the name and address of the U.S. manufacturer, the Center director may require, in addition to the declarations required in paragraph (a) of this section, such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment. Such other documentation or evidence may include a statement from the U.S. manufacturer verifying that the articles were made in the United States, or a U.S. export invoice, bill of lading or airway bill evidencing the U.S. origin of the articles and/or the reason for the exportation of the articles. (c) A certificate from the master of a vessel stating that products of the United States are returned without having been unladen from the exporting vessel may be accepted in lieu of the declaration of the foreign shipper required by paragraph (a)(1) of this section. (d) If the Center director is reasonably satisfied, because of the nature of the articles or production of other evidence, that the articles are imported in circumstances meeting the requirements of subheading 9801.00.10 or 9802.00.20, HTSUS, and related section and additional U.S. notes, he may waive the requirements for producing the documents specified in paragraph (a) of this section. (e) No evidence relative to the conditions of subheading 9801.00.10, HTSUS, will be required in the case of articles the product of the U.S. in use at the time of importation as the usual coverings or containers of merchandise not subject to an ad valorem rate of duty unless such articles would be dutiable if not products of the U.S. under General Rule of Interpretation 5, HTSUS. (f) In the case of photographic films and dry plates manufactured in the United States (except motion picture films to be used for commercial purposes) exposed abroad and entered under subheading 9802.00.20, HTSUS, the requirements of paragraphs (a) and (c) of this section are applicable except that the declaration by the foreign shipper provided for in paragraph (a)(1) to the effect that the articles “are returned without having been advanced in value or improved in condition by any process of manufacture or other means” must be crossed out, and the entrant must show on the declaration provided for in paragraph (a)(2) that the subject articles when exported were of U.S. manufacture and are returned after having been exposed, or exposed and developed, and, in the case of motion picture films, that they will not be used for commercial purposes. (g) Aircraft and aircraft parts and equipment. (2) The entrant must show on CBP Form 3311, or its electronic equivalent: (i) The name and address of the aircraft owner or operator by whom or for whose account the articles are returned to the United States, in the block headed “Articles Returned To (Name and Address)”, (ii) The name of the importing vessel or conveyance, (iii) The date of its arrival, (iv) A description of the articles, (v) The value of the articles, and (vi) That the articles are intended for use by the aircraft owner or operator in his own aircraft operations. (3) If CBP Form 3311, or its electronic equivalent, is filed at time of entry, it will serve as both the entry and the entry summary. (h) Nonconsumable vessel stores and equipment. (i) The articles are products of the United States. (ii) The articles have not been improved in condition or advanced in value while abroad. (iii) No drawback has been or will be paid, and (iv) No duty equal to an internal revenue tax is payable under subheading 9801.00.80, HTSUS. (2) The documentation described in paragraph (a) of this section will not be required in connection with an entry for nonconsumable vessel stores and equipment on CBP Form 3311, or its electronic equivalent. (3) To satisfy the CBP officer that no drawback has been or will be paid on the articles in connection with their removal from the United States, the master of the vessel or other person having knowledge of the facts must furnish a written declaration which may be made on the reverse side of CBP Form 3311, or its electronic equivalent, showing that the articles were: (i) Exported as stores or equipment on a United States vessel or a vessel operated by the United States Government, (ii) Not landed in a foreign country, except for any needed repairs, adjustments, or refilling and return to the vessel from which landed or, (iii) For transshipment as stores or equipment to another vessel. (4) The entrant also must show: (i) The name of the importing vessel, (ii) The date of its arrival, (iii) A description of the articles, and (iv) The value of the articles. (5) If CBP Form 3311, or its electronic equivalent, is filed at time of entry, it will serve as both the entry and the entry summary. (i) When the total value of articles of claimed American origin contained in any shipment does not exceed $250 and such articles are found to be unquestionably products of the United States and do not appear to have been advanced in value or improved in condition while abroad and no quota is involved, free entry thereof may be made under subheading 9801.00.10 on CBP Form 3311, or its electronic equivalent, executed by the owner, importer, consignee, or agent and filed in duplicate, without regard to the requirement of filing the documentation provided for in paragraph (a) of this section, unless the CBP officer has reason to believe that Customs drawback or exemption from internal revenue tax, or both, were probably allowed on exportation of the articles or that they are otherwise subject to duty. The entrant must show on Customs Form 3311, or its electronic equivalent, the name of the importing conveyance, the date of its arrival, the name of the country from which the articles were returned to the United States, and the value of the articles. The entrant must also produce evidence of his right to make entry (except as provided in § 141.11(b) of this chapter). If the Customs officer is not entirely certain that the articles to be entered under this paragraph by a nominal consignee are products of the United States, the actual owner or ultimate consignee thereof may be required to execute a Customs Form 3311, or its electronic equivalent. (j) In the case of products of the United States, when the aggregate value of the shipment does not exceed $10,000 and the products are imported— (1) For the purposes of repair or alteration, prior to reexportation, or (2) After having been either rejected or returned by the foreign purchaser to the United States for credit, free entry thereof may be made under subheading 9801.00.10, HTSUS, on CBP Form 3311, or its electronic equivalent, (a CBP Form 7501, or its electronic equivalent, must be submitted as well for such articles as provided in § 143.23(h) of this chapter), executed by the owner, importer, consignee, or agent and filed in duplicate, without regard to the requirement of filing the documentation provided for in paragraph (a) of this section, unless the CBP officer has reason to believe that CBP drawback or exemption from internal revenue tax, or both, were probably allowed on exportation of the articles or that they are otherwise subject to duty. The person making entry must show on CBP Form 3311, or its electronic equivalent, the name of the importing conveyance, the date of its arrival, the name of the country from which the articles were returned to the United States, and the value of the articles. The person making entry must also produce evidence of his right to make entry (except as provided in § 141.11(b) of this chapter). If the CBP officer is not entirely certain that the articles to be entered under this paragraph by a nominal consignee are products of the United States, the actual owner or ultimate consignee thereof may be required to execute a CBP Form 3311, or its electronic equivalent. [T.D. 72-119, 37 FR 8867, May 2, 1972] Editorial Note: For Federal Register www.govinfo.gov. § 10.3 Drawback; internal-revenue tax. (a) Except as prescribed in § 10.1(f) or in paragraphs (c) and (f) of this section, no free entry shall be allowed under Chapter 98, Subchapter 1, Harmonized Tariff Schedule of the United States (HTSUS), in the final liquidation of an entry unless the Center director is satisfied by the certificate of exportation or other evidence or information that no drawback was allowed in connection with the exportation from the United States, and unless no internal-revenue tax is imposed on the importation of like articles not previously exported from the United States or, if such tax is being imposed at the time of entry for consumption or withdrawal from warehouse for consumption, the Center director is satisfied that an internal-revenue tax on production or importation was paid in respect of the imported article before it was exported from the United States and was not refunded. Except as provided for in § 10.1(f), when it is impracticable, because of the destruction of Customs records or other circumstances, to determine whether drawback was allowed, or the amount of drawback allowed, with respect to an article established to be a returned product of the United States which has not been advanced in value or improved in condition while abroad, there shall be assessed on the returned article an amount of duty determined as follows: (1) If there is any likelihood that drawback was allowable on the exportation of like articles at any time when the imported article may have been exported from the United States, the estimated amount of any drawback which would have been allowable if duty had been paid on any foreign merchandise likely to have been used in the manufacture of the returned article at the rate or rates applicable to such foreign merchandise on the date of importation of the returned article (see paragraph (b) of this section), and (2) If there is any likelihood that a refund or remission of tax was allowed on the exportation of the returned article, the amount of any internal-revenue tax which would be payable at the time of importation if the returned article were wholly of foreign origin, but in no such case shall there be assessed more than an amount equal to the duty and tax that would apply if the returned article were wholly of foreign origin and originally imported. (See § 10.7(a).) Except as provided for in § 10.1(f), if the imported article is of a kind which would be subject to an internal-revenue tax if of foreign origin and payment of an internal-revenue tax before exportation without refund thereof is not established, duty shall be assessed on the imported article in an amount equal to the internal-revenue tax imposed at the time of entry for consumption or withdrawal from warehouse for consumption on like articles of foreign origin, plus the amount of any drawback allowed on the exportation of the article from the United States; but if no drawback was allowed, the duty equal to internal-revenue tax shall be the total duty to be assessed. If an allowance of drawback on the exportation from the United States of the imported article is established, duty shall be assessed in an amount equal to such drawback, plus an amount equal to any internal-revenue tax which may be assessable in accordance with this paragraph; but in no case shall duty equal to drawback, or to drawback and internal-revenue tax, be assessed in an amount in excess of the ordinary Customs duty and internal-revenue tax applicable to like articles of foreign origin. In any case, where payment of internal-revenue tax before exportation without refund thereof is established, no duty equal to an internal-revenue tax currently in force shall be assessed. (b) In the absence of satisfactory evidence as to the nonallowance of drawback or the amount thereof allowed on the following articles of American manufacture or production, duty shall be assessed thereon in the amounts respectively indicated, the amount shown in each case being considered the fair average amount of drawback allowed on such articles: Article Duty assessment Drums, metal (when not exempted from duty in accordance with sec. 10.3(c)) 24 cents each. Hosiery, nylon 45 cents per dozen. Lead compound, tetraethyl $0.003 per kilogram. Lithopone $0.00065 per kilogram. Oxide, zinc $0.0029 per kilogram. Piece goods, cotton: Bleached $0.03199 per square meter. Dyed $0.03454 per square meter. Printed $0.03226 per square meter. Piece goods, nylon: Dyed $0.29086 per square meter. Piece goods, rayon: Printed $0.04867 per square meter. Other than printed (white, piece dyed or yarn dyed) $0.08478 per square meter. Tallow, refined, inedible $0.003 per kilogram. (c) The following articles shall be admitted free of duty, even though exported from the United States with benefit of drawback: (1) Any article of a kind which would be admitted free of duty otherwise than under Chapter 98, Subchapter 1, HTSUS, if of foreign origin; (2) Substantial containers or holders of domestic manufacture, including shooks and staves when returned as boxes or barrels, when in use at the time of importation as the usual containers of merchandise; (3) Any article provided for in subheadings 9801.00.70 or 9801.00.80, HTSUS, with respect to which the Center director has determined that the collection of duty under such subheadings 9801.00.70 or 9801.00.80, HTSUS, would involve an expense and inconvenience to the Government disproportionate to the probable amount of such duty; and (4) Other articles of domestic manufacture which are in use at the time of importation as the usual coverings or containers of merchandise not subject to an ad valorem rate of duty, and which have not been advanced in value or improved in condition while abroad by any process of manufacture or other means. (d) Articles manufactured or produced in the United States in a Customs bonded warehouse and exported shall be subject on reimportation to a duty equal to the total duty and internal-revenue tax, if any, imposed at the time of entry for consumption or withdrawal from warehouse for consumption with respect to the importation of like articles not previously exported from the United States. (e) Animals straying across the border or driven across the border for pasturage purposes or for feeding to improve them for the market and not returned within 8 months are excluded from free entry as domestic products returned. (f) Tobacco products and cigarette papers and tubes classifiable under subheading 9801.00.80, HTSUS, may be released from customs custody without the payment of that part of the duty attributable to the internal-revenue tax for return to internal-revenue bond as provided by section 5704(d) of the Internal Revenue Code of 1954. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 68-104, 33 FR 5616, Apr. 11, 1968; T.D. 83-240, 48 FR 53098, Nov. 25, 1983; T.D. 89-1, 53 FR 51246, Dec. 21, 1988; T.D. 93-66, 58 FR 44130, Aug. 19, 1993] § 10.4 Internal-revenue marks; erasure. Internal-revenue brands or marks on casks or other containers previously exported from the United States must be erased at the importer's expense under Customs supervision before their delivery from Customs custody. § 10.5 Shooks and staves; cloth boards; port director's account. (a) Shooks and staves produced in the United States and returned in the form of complete boxes or barrels in use as the usual containers of merchandise are exempt from any duties imposed by the tariff laws upon similar containers made of foreign shooks or staves, provided their identity is established under the regulations in this part. (b) The term “shook” embraces only shooks which at the time of exportation from this country are ready to be assembled into boxes or barrels without further cutting to size; except that box shooks may be exported in double lengths and cut abroad. The number of boxes made from such shooks which may be imported into this country free of duty cannot exceed the number of complete sets of shooks exported. (c) [Reserved] (d) An exporter of shooks or staves in respect of which free entry is to be claimed when returned as boxes or barrels shall file in triplicate with the director of the port of exportation, at least 6 hours before the landing of the articles on the exporting vessel, a Certificate of Registration, Customs Form 4455, or its electronic equivalent. (e) The Certificate of Registration, CF 4455, or its electronic equivalent, shall be completed in triplicate by the port director after verification from the manifest of the exporting vessel and the return of the lading officer. The original shall be forwarded by the port director to the consignee. The duplicate copy shall be given to the exporter and the triplicate copy shall be retained. (f) Whenever boxes or barrels alleged to have been manufactured from American shooks or staves are shipped to the United States from a person abroad other than the one to whom they were exported from the United States, the importer shall be required to obtain from the foreign consignee to whom the shooks or staves were originally exported from this country the certificate or certificates, Customs Form 4455, or its electronic equivalent, covering the exportation of the shooks or staves from the United States, or an extract therefrom signed by such consignee, showing the number of shooks or staves covered by such certificate or certificates, together with the number of superficial feet of such shooks or staves. Such Form 4455, or its electronic equivalent, or extract therefrom, shall be filed by the importer in connection with the entry of the boxes or barrels. (g) Accounts shall be kept by the director of the port of exportation of the shooks and staves as to each exportation thereof and as to the returns thereof in boxes, barrels, etc. Notifications of such returns shall be given to the port of exportation by the director of the port of importation. When returns in the form of boxes, barrels, etc., entirely account for the shooks and staves exported as shown on the appropriate Customs Form 4455, or its electronic equivalent, the port director maintaining the account shall so inform the port director making inquiry about the merchandise being imported and alleged to contain shooks or staves covered by the particular exportation. (h) A record of cloth boards of domestic manufacture exported to be wrapped with foreign textiles shall be kept by the port director in a similar manner as for shooks and staves. Cloth boards of domestic manufacture are conditionally free of duty under Chapter 98, subchapter 1, Harmonized Tariff Schedule of the United States (HTSUS). If such boards are advanced in value or improved in condition while abroad, free entry shall be denied on importation. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 29, 1978; T.D. 89-1, 53 FR 51247, Dec. 21, 1988; T.D. 98-52, 63 FR 29954, June 2, 1998; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.6 Shooks and staves; claim for duty exemption. An importer, seeking an exemption from duty on account of boxes or barrels made from American shooks or staves, must make such a claim on Customs Form 4455, or its electronic equivalent, at the time of filing the entry. Upon receipt, from the director of the port of exportation of the shooks and staves, of corroboration that the records of exportation do not conflict materially with such a claim, the exemption may be allowed. If the claim for an exemption is disallowed in full or in part, the importer may file a request within 15 days of the date of the port director's notice to him of any disallowance, for referral of the question to the Commissioner of Customs for review. [T.D. 87-75, 52 FR 20066, May 29, 1987, as amended by T.D. 98-52, 63 FR 29954, June 2, 1998; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.7 Substantial containers or holders. (a) Substantial containers or holders, which are products of the United States, which are of the usual and ordinary types used in the shipment or transportation of goods, which are reusable for such purposes, and which are imported containing or holding merchandise, shall be entered under the general regulations governing the free entry of domestic products exported and returned. When such containers or holders are imported not containing or holding merchandise they may be admitted without entry if readily identifiable as products of the United States. (b) Substantial containers or holders, which are of foreign production and previously imported duty paid, which are of the usual or ordinary types used in the shipment or transportation of goods, which are reusable for such purpose, and which are imported containing or holding merchandise, shall be exempt from duty if (1) exported in accordance with the regulations contained in § 10.5 (d) and (e), and (2) there is filed in connection with the entry a certificate of the foreign shipper in the form prescribed by paragraph (c) of this section. (c) The certificate to be furnished by the foreign shipper for the use of the director of the port of entry shall be in the following form: I, ________________, of ________________, do hereby certify that to the best of my knowledge and belief the substantial containers and holders mentioned in (the annexed invoice) (invoice No. ________ of ________, 19____) * are of the manufacture of ________________ and were exported from the United States at the port of ____________, per S.S. ________________ on __________, 19____, and that the same are being returned to the United States (empty) filled with ________) (holdings ______________).* * Cross out inapplicable words. Shipper (d) The port director, after verification of the foreign shipper's certificate with the records of the director of the port of exportation in this country, shall allow free entry to the extent the basis for such allowance is verified. The procedure in the last two sentences of § 10.6 shall be applicable. (e) If claim for exemption from duty for such containers or holders of foreign production previously imported duty paid is made at the time of entry, the certificate of the foreign shipper may be accepted if produced at any time prior to the liquidation of the entry. (f) When such containers or holders of foreign production previously imported duty paid are reimported empty, they may be admitted without entry if readily identifiable as having been previously imported duty paid. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35475, Aug. 16, 1982; T.D. 86-118, 51 FR 22515, June 20, 1986; T.D. 97-82, 62 FR 51769, Oct. 3, 1997] § 10.8 Articles exported for repairs or alterations. (a) Except as otherwise provided for in this section and except in the case of goods covered by § 181.64 of this chapter, the following documents shall be filed in connection with the entry of articles which are returned after having been exported for repairs or alterations and which are claimed to be subject to duty only on the value of the repairs or alterations performed abroad under subheading 9802.00.40 or 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS): (1) A declaration from the person who performed such repairs or alterations, in substantially the following form: I,________________, declare that the articles herein specified are the articles which, in the condition in which they were exported from the United States, were received by me (us) on ________________, 19____, from________________ (name and address of owner or exporter in the United States); that they were received by me (us) for the sole purpose of being repaired or altered; that only the repairs or alterations described below were performed by me (us); that the full cost or (when no charge is made) value of such repairs or alterations are correctly stated below; and that no substitution whatever has been made to replace any of the articles originally received by me (us) from the owner or exporter thereof mentioned above. Marks and numbers Description of articles and of repairs or alterations Full cost or (when no charge is made) value of repairs or alterations (see subchapter II, chapter 98, HTSUS) Total value of articles after repairs or alterations (Date) (Address) (Signature) (Capacity) (2) A declaration by the owner, importer, consignee, or agent having knowledge of the pertinent facts in substantially the following form: I, __________, declare that the (above) (attached) declaration by the person who performed the repairs or alterations abroad is true and correct to the best of my knowledge and belief; that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS; that such articles were exported from the United States for repairs or alterations and without benefit of drawback (unless subject to USMCA drawback) from ________________ (port) on ________________, 19____; and that the articles entered in their repaired or altered condition are the same articles that were exported on the above date and that are identified in the (above) (attached) declaration. (Date) (Address) (Signature) (Capacity) (b) The Center director may require such additional documentation as is deemed necessary to prove actual exportation of the articles from the United States for repairs or alterations, such as a foreign customs entry, foreign customs invoice, foreign landing certificate, bill of lading, or an airway bill. (c) If the Center director concerned is satisfied, because of the nature of the articles or production of other evidence, that the articles are imported under circumstances meeting the requirements of subheading 9802.00.40 or 9802.00.50, HTSUS, and related section and additional U.S. notes, he may waive submission of the declarations provided for in paragraph (a) of this section. (d) The port director or Center director shall require at the time of entry a deposit of estimated duties based upon the full cost or value of the repairs or alterations. The cost or value of the repairs or alterations outside the United States, which is to be set forth in the invoice and entry papers as the basis for the assessment of duty under subheading 9802.00.40 or 9802.00.50, HTSUS, shall be limited to the cost or value of the repairs or alterations actually performed abroad, which will include all domestic and foreign articles furnished for the repairs or alterations but shall not include any of the expenses incurred in this country whether by way of engineering costs, preparation of plans or specifications, furnishing of tools or equipment for doing the repairs or alterations abroad, or otherwise. [T.D. 94-47, 59 FR 25567, May 17, 1994, as amended by T.D. 95-68, 60 FR 46361, Sept. 6, 1995; CBP Dec. 21-10, 86 FR 35581, July 6, 2021] § 10.8a Imported articles exported and reimported. (a) In addition to regular entry procedures, supplementary documentation is required in connection with duty-free entries under subheading 9801.00.25, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), of articles which were originally entered duty paid, removed from Customs custody, and subsequently exported, if: (1) The articles were exported within 3 years after the date of the previous importation. (2) The articles were not advanced in value or improved in condition by any process of manufacture or other means while abroad. (3) The articles did not conform to sample or specifications abroad. (4) The articles are reimported by or for the account of the person who imported them into and exported them from the United States. (b) The following supplementary documents shall be filed in connection with the entry of articles claimed to be free of duty under subheading 9801.00.25, Harmonized Tariff Schedule of the United States: (1) A declaration by the person abroad who received and is returning the merchandise to the United States, in substantially the following form: I declare that the______________________ (Description of articles) were received by me from __________________________________ (Name and address of U.S. exporter), that they have not been advanced in value or improved in condition by any process of manufacture or other means and are being returned to ________________________________(Name and address of consignee in the United States) because they do not conform to sample or specifications for the following reasons: (Date) (Signature) (Address) (Title) (2) A declaration by the owner, importer, consignee, or agent, in substantially the following form: I declare that the ______________________ (Description of articles) were previously imported into the United States at the Port of ________________ (Name of port), Entry No.______, on ______________ (Date of entry) by ______________________ (Name and address of importer) at which time duty was paid; that they were exported from the United States at the Port of ________________ (Name of port) on ____________________ (Date of exportation) by ______________________ (Name and address of exporter) without benefit of drawback; that the articles are being reimported by or for the account of ________________, and, that the attached declaration from ________________________________ (Name of foreign shipper) is correct in every respect. (Date) (Signature) (Address) (Title) (c) If the Center director concerned is reasonably satisfied because of the nature of the articles or production of other evidence that the requirements of subheading 9801.00.25, Harmonized Tariff Schedule of the United States, and the related section and additional U.S. notes have been met, he may waive the production of the documents provided for in paragraph (b) of this section. [T.D. 72-221, 37 FR 17469, Aug. 29, 1972, as amended by T.D. 89-1, 53 FR 51247, Dec. 21, 1988] § 10.9 Articles exported for processing. (a) Except as otherwise provided for in this section, the following documents shall be filed in connection with the entry of articles which are returned after having been exported for further processing and which are claimed to be subject to duty only on the value of the processing performed abroad under subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS): (1) A declaration by the person who performed the processing abroad, in substantially the following form: I, __________, declare that the articles herein specified are the articles which, in the condition in which they were exported from the United States, were received by me (us) on ____________, 19 ______, from ________________ (name and address of owner or exporter in the United States); that they were received by me (us) for the sole purpose of being processed; that only the processing described below was effected by me (us); that the full cost or (when no charge is made) value of such processing and the value of the articles after processing are correctly stated below; and that no substitution whatever has been made to replace any of the articles originally received by me (us) from the owner or exporter thereof mentioned above. Marks and numbers Description of articles and of processing Full cost or (when no charge is made) value of processing (see subchapter II, chapter 98, HTSUS) Total value of articles after processing (Date) (Address) (Signature) (Capacity) (2) A declaration by the owner, importer, consignee, or agent having knowledge of the pertinent facts in substantially the following form: I, __________, declare that the (above) (attached) declaration by the person who performed the processing abroad is true and correct to the best of my knowledge and belief; that the articles were manufactured in the United States by ________________ (name and address) or, if of foreign origin, were subjected to ________________ (show processes of manufacture, such as molding, casting, machining) in the United States by ________________ (name and address); that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS; that the articles were exported for processing and without benefit of drawback from ________________ (port) on ____________, 19 ______; that the articles entered in their processed condition are otherwise the same articles that were exported on the above date and that are identified in the (above) (attached) declaration; and that the returned articles will be subjected to ________________ (describe processing to be performed in the United States) by ________________ (name and address of U.S. processor). (Date) (Address) (Signature) (Capacity) (b) The Center director may require such additional documentation as is deemed necessary to prove actual exportation of the articles from the United States for processing, such as a foreign customs entry, foreign customs invoice, foreign landing certificate, bill of lading, or an airway bill. (c) If the Center director concerned is satisfied, because of the nature of the articles or production of other evidence, that the articles are imported under circumstances meeting the requirements of subheading 9802.00.60, HTSUS, and related section and additional U.S. notes, he may waive submission of the declarations provided for in paragraph (a) of this section. (d) The port director or Center director shall require at the time of entry a deposit of estimated duties based upon the full cost or value of the processing. The cost or value of the processing outside the United States, which is to be set forth in the invoice and entry papers as the basis for the assessment of duty under subheading 9802.00.60, HTSUS, shall be limited to the cost or value of the processing actually performed abroad, which will include all domestic and foreign articles used in the processing but shall not include the exported United States metal article or any of the expenses incurred in this country whether by way of engineering costs, preparation of plans or specifications, furnishing of tools or equipment for doing the processing abroad, or otherwise. [T.D. 94-47, 59 FR 25568, May 17, 1994] § 10.10 [Reserved] Articles Assembled Abroad With United States Components § 10.11 General. (a) Sections 10.12 through 10.23 set forth definitions and interpretative regulations adopted by the Commissioner of Customs pertaining to the construction of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) and related provisions of law. These provisions concern claims for the exemption from duty provided by subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), for American-made fabricated components which are returned to the United States as parts of articles assembled abroad. The examples included in these sections describe specific situations in which the exemption may or may not be applicable. The definitions and regulations that follow are promulgated to inform the public of the constructions and interpretations that the United States Customs Service shall give to relevant statutory terms and to assure the impartial and uniform assessment of duties upon merchandise claimed to be partially exempt from duty under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), at the various ports of entry. Nothing in these regulations purports or is intended to restrict the legal right of importers or others to a judicial review of the matters contained therein. (b) Section 10.24 sets forth the documentary requirements applicable to the entry of assembled articles claimed to be subject to the exemption provided under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202). Allowance of an importer's claim is dependent upon meeting the statutory requirements for the exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) and his complying with the documentary requirements set forth in § 10.24. [T.D. 75-230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89-1, 53 FR 51247, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997] § 10.12 Definitions. As used in §§ 10.11 through 10.24, the following terms shall have the meanings indicated: (a) American-made. (b) Assembly. (c) Exemption. (d) Fabricated component. (e) Product of the United States. [T.D. 75-230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89-1, 53 FR 51247, Dec. 21, 1988] § 10.13 Statutory provision: Subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202). Subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), (19 U.S.C. 1202), provides that articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating, and painting, are subject to a duty upon the full value of the imported article, less the cost or, if no charge is made, the value of such products of the United States. The rate of duty which is assessed upon the dutiable portion of the imported article is that which is applicable to the imported article as a whole under the appropriate provision of the HTSUS (19 U.S.C. 1202) for such article. If that provision requires a specific or compound rate of duty, the total duties assessed on the imported article are reduced in such proportion as the cost or value of the returned United States components which qualify for the exemption bears to the full value of the assembled article. Example 1. A transistor radio is assembled abroad from foreign-made components and American-made transistors. Upon importation, the transistor radio is subject to the ad valorem rate of duty applicable to transistor radios upon the value of the radio less the cost or value of the American-made transistors assembled therein. Example 2. A solid-state watch movement is assembled abroad from foreign-made components and an American-made integrated circuit. If the movement in question is subject to the specific rate of duty of 75 cents if the value of the assembled movement is $30, and if the value of the American-made integrated circuit is $10, then the value of the integrated circuit represents one third of the total value of the assembled article and the duty on the assembled article will be reduced by one third ($.25). Therefore, the duty on the assembled movement is 50 cents. [T.D. 75-230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89-1, 53 FR 51247, Dec. 21, 1988] § 10.14 Fabricated components subject to the exemption. (a) Fabricated components, the product of the United States. Example 1. Articles identifiable in their exported condition as components or parts of the article into which they will be assembled, such as transistors, diodes, integrated circuits, machinery parts, or precut parts of wearing apparel, are regarded as fabricated components. Example 2. Prestamped metal lead frames for semiconductor devices exported in multiple unit strips in which the individual frame units are connected to each other, or integrated circuit wafers containing individual integrated circuit dice which have been scribed or scored in the United States, are regarded as fabricated components. The separation of the individual frames by cutting, or the segmentation of the wafer into individual dice by flexing and breaking along scribed or scored lines, is regarded as an operation incidental to the assembly process. Example 3. Wires of various type, electrical conductors, metal foils, insulating tapes, ribbons, findings used in dressmaking, and similar products, which are in a finished state when exported from the United States, and are ready for use in the assembly of the imported article, are regarded as fabricated components if they are only cut to length or subjected to operations incidental to the assembly process while abroad. Example 4. Uncut textile fabrics exported in bolts from which wearing apparel components will be cut according to a pattern are not regarded as fabricated components. Similarly, other materials, such as lumber, leather, sheet metal, plastic sheeting, exported in basic shapes and forms to be fabricated into components for assembly, are not eligible for treatment as fabricated components. (b) Substantial transformation of foreign-made articles or materials. Example 1. A cast metal housing for a valve is made in the United States from imported copper ingots, the product of a foreign country. The housing is a product of the United States because the manufacturing operations performed in the United States to produce the housing resulted in a substantial transformation of the foreign copper ingots. Example 2. An integrated circuit device is assembled in a foreign country and imported into the United States where its leads are formed by bending them to a specified angle. It is then tested and marked. The imported article does not become a product of the United States because the operations performed in the United States do not result in a substantial transformation of the foreign integrated circuit device. Example 3. A circuit board assembly for a computer is assembled in the United States by soldering American-made and foreign-made components onto an American-made printed circuit board. The finished circuit board assembly has a distinct electronic function and is ready for incorporation into the computer. The foreign-made components have undergone a substantial transformation by becoming permanent parts of the circuit board assembly. The circuit board assembly, including all of its parts is regarded as a fabricated component, the product of the United States, for purposes of subheading 9802.00.80, HTSUS (19 U.S.C. 1202). [T.D. 75-230, 40 FR 43022, Sept. 18, 1975, as amended by T.D. 89-1, 53 FR 51247, Dec. 21, 1988] § 10.15 Fabricated components not subject to the exemption. Fabricated components which are not products of the United States are excluded from the exemption. In addition, the exemption is not applicable to any component exported from the Customs territory of the United States: (a) From continuous Customs custody with remission, abatement, or refund of duty; (b) With benefit of drawback; (c) To comply with any law of the United States or regulation of any Federal agency requiring exportation; or (d) After manufacture or production in the United States under subheading 9813.00.05, HTSUS (19 U.S.C. 1202). Example. Partially completed components of an electric motor are imported in several separate shipments and are entered under a temporary importation bond to be manufactured into finished motors under the provisions of subheading 9813.00.05, HTSUS (19 U.S.C. 1202). The components are completed and assembled into finished electric motors. The finished motors are exported and are assembled abroad into electric fans which are subsequently imported into the United States. Irrespective of the fact that the assembly of the motors might involve such a substantial change that the motor could be considered a product of the United States, no exemption may be given for the value of the electric motors, since they were exported after manufacture or production in the United States under the provision of subheading 9813.00.05, HTSUS (19 U.S.C. 1202). [T.D. 75-230, 40 FR 43023, Sept. 18, 1975, as amended by T.D. 89-1, 53 FR 51247, Dec. 21, 1988] § 10.16 Assembly abroad. (a) Assembly operations. Example 1. A television yoke is assembled abroad from American-made magnet wire. In the foreign assembly plant the wire is despooled and wound into a coil, the wire cut from the spool, and the coil united with other components, including a terminal panel and housing which are also American-made. The completed article upon importation would be subject to the ad valorem rate of duty applicable to television parts upon the value of the yoke less the cost or value of the American-made wire, terminal panel and housing, assembled therein. The winding and cutting of the wire are either assembly steps or steps incidental to assembly. Example 2. An aluminum electrolytic capacitor is assembled abroad from American-made aluminum foil, paper, tape, and Mylar film. In the foreign assembly plant the aluminum foil is trimmed to the desired width, cut to the desired length, interleaved with paper, which may or may not be cut to length or despooled from a continuous length, and rolled into a cylinder wherein the foil and paper are cut and a section of sealing tape fastened to the surface to prevent these components from unwinding. Wire or other electric connectors are bonded at appropriate intervals to the aluminum foil of the cylinder which is then inserted into a metal can, and the ends closed with a protective washer. As imported, the capacitor is subject to the ad valorem rate of duty applicable to capacitors upon the value less the cost or value of the American-made foil, paper, tape, and Mylar film. The operations performed on these components are all either assembly steps or steps incidental to assembly. Example 3. The manufacture abroad of cloth on a loom using thread or yarn exported from the United States on spools, cops, or pirns is not considered an assembly but a weaving operation, and the thread or yarn does not qualify for the exemption. However, American-made thread used to sew buttons or garment components is qualified for the exemption because it is used in an operation involving the assembly of solid components. (b) Operations incidental to the assembly process. (1) Cleaning; (2) Removal of rust, grease, paint, or other preservative coating; (3) Application of paint or preservative coating, including preservative metallic coating, lubricants, or protective encapsulation; (4) Trimming, filing, or cutting off of small amounts of excess materials; (5) Adjustments in the shape or form of a component to the extent required by the assembly being performed abroad; (6) Cutting to length of wire, thread, tape, foil, and similar products exported in continuous length; separation by cutting of finished components, such as prestamped integrated circuit lead frames exported in multiple unit strips; and (7) Final calibration, testing, marking, sorting, pressing, and folding of assembled articles. (c) Operations not incidental to the assembly process. (1) Melting of exported ingots and pouring of the metal into molds to produce cast metal parts; (2) Cutting of garment parts according to pattern from exported material; (3) Chemical treatment of components or assembled articles to impart new characteristics, such as showerproofing, permapressing, sanforizing, dying or bleaching of textiles; (4) Machining, polishing, burnishing, peening, plating (other than plating incidental to the assembly), embossing, pressing, stamping, extruding, drawing, annealing, tempering, case hardening, and any other operation, treatment or process which imparts significant new characteristics or qualities to the article affected. (d) Joining of American-made and foreign-made components. Example. Diodes are assembled abroad from American-made components. The process includes the encapsulation of the assembled components in a plastic shell. The plastic used for the encapsulation is in the form of a pellet, and is of foreign origin. After the prefabricated diode components are assembled, the assembled unit is placed in a transfer molding machine, where, by use of the pellet, molten epoxy is caused to flow around the perimeters of the assembled components, forming upon solidification a plastic body for the diode. Upon importation, exemption may be granted for the value of the American-made components, but not for the value of the plastic pellet. If the plastic pellet used for encapsulation was of United States origin, its value would still be a part of the dutiable value of the diode, because the plastic pellet is not a fabricated component of a type designed to be fitted together by assembly, but merely a premeasured quantity of material which was applied to the assembled unit by a process not constituting an assembly. (e) Subassembly. Example. Rolls of foil and rolls of paper are exported and cut to specific length abroad and interleaved and rolled to form the electrodes and dielectric of a capacitor. Following this procedure, the rolls are assembled with cans and other parts to form a complete capacitor. The foil and paper are entitled to the exemption. (f) Packing. [T.D. 75-230, 40 FR 43023, Sept. 18, 1975, as amended by T.D. 89-1, 53 FR 51248, Dec. 21, 1988; CBP Dec. 08-21, 73 FR 33300, June 12, 2008] § 10.17 Valuation of exempted components. The value of fabricated components to be subtracted from the full value of the assembled article is the cost of the components when last purchased, f.o.b. United States port of exportation or point of border crossing as set out in the invoice and entry papers, or, if no purchase was made, the value of the components at the time of their shipment for exportation, f.o.b. United States port of exportation or point of border crossing, as set out in the invoice and entry papers. However, if the appraising officer concludes that the cost or value of the fabricated components so ascertained does not represent a reasonable cost or value, then the value of the components shall be determined in accordance with section 402 or section 402a, Tariff Act of 1930, as amended (19 U.S.C. 1401a, 1402). [T.D. 75-230, 40 FR 43024, Sept. 18, 1975] § 10.18 Valuation of assembled articles. As in the case of the appraisement of any other import merchandise (see subpart C of part 152 of this chapter), the full value of assembled articles imported under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202), is determined in accordance with 19 CFR 152.100 et seq. [T.D. 87-89, 52 FR 24445, July 1, 1987, as amended by T.D. 89-1, 53 FR 51248, Dec. 21, 1988] §§ 10.19-10.20 [Reserved] § 10.21 Updating cost data and other information. When a claim for the exemption is predicated on estimated cost data furnished either in advance of or at the time of entry, this fact should be clearly stated in writing at the time of entry, and suspension of liquidation may be requested by the importer or his agent pending the furnishing of actual cost data. Actual cost data must be submitted as soon as accounting procedures permit. To insure that information used for Customs purposes is reasonably current, the importer shall ordinarily be required to furnish updated cost and assembly data at least every six months, regardless of whether he considers that significant changes have occurred. The 6-month period for the submission of updated cost or other data may be extended by the Center director if such extension is appropriate for the type of merchandise involved, or because of the accounting period normally used in the trade, or because of other relevant circumstances. [T.D. 75-230, 40 FR 43025, Sept. 18, 1975] § 10.23 Standards, quotas, and visas. All requirements and restrictions applicable to imported merchandise, such as labeling, radiation standards, flame-retarding properties, quotas, and visas, apply to assembled articles eligible for the exemption in the same manner as they would apply to all other imported merchandise. [T.D. 75-230, 40 FR 43025, Sept. 18, 1975] § 10.24 Documentation. (a) Documents required. (1) Declaration by the assembler. I, __________, declare that to the best of my knowledge and belief the __________ were assembled in whole or in part from fabricated components listed and described below, which are products of the United States: Marks of identification, numbers Description of component Quantity Unit value at time and place of export from United States 1 Port and date of export from United States Name and address of manufacturer 1 Description of the operations performed abroad on the exported components (in sufficient detail to enable Customs officers to determine whether the operations performed are within the preview of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) (attach supplemental sheet if more space is required)): Date Signature Address Capacity (2) Endorsement by the importer. I declare that to the best of my knowledge and belief the (above), (attached) declaration, and any other information submitted herewith, or otherwise supplied or referred to, is correct in every respect and there has been compliance with all pertinent legal notes to the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202). Date Signature Address Capacity (b) Revision of format. (c) Reference to previously filed documents. (d) Waiver of specific details for each entry. (e) Waiver of documents. (f) Unavailability of documents at time of entry. (g) Responsibility of correctness. [T.D. 75-230, 40 FR 43025, Sept. 18, 1975, as amended by T.D. 79-159, 44 FR 31967, June 4, 1979; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51248, Dec. 21, 1988] § 10.25 Textile components cut to shape in the United States and assembled abroad. Where a textile component is cut to shape (but not to length, width, or both) in the United States from foreign fabric and exported to another country, territory, or insular possession for assembly into an article that is then returned to the United States and entered, or withdrawn from warehouse, for consumption on or after July 1, 1996, the value of the textile component shall not be included in the dutiable value of the article. For purposes of determining whether a reduction in the dutiable value of an imported article may be allowed under this section: (a) The terms “textile component” and “fabric” have reference only to goods covered by the definition of “textile or apparel product” set forth in § 102.21(b)(5) of this chapter; (b) The operations performed abroad on the textile component shall conform to the requirements and examples set forth in § 10.16 insofar as they may be applicable to a textile component; and (c) The valuation and documentation provisions of §§ 10.17, 10.18, 10.21 and 10.24 shall apply. [T.D. 95-69, 60 FR 46196, Sept. 5, 1995; T.D. 95-69, 60 FR 55995, Nov. 6, 1995] § 10.26 Articles assembled or processed in a beneficiary country in whole of U.S. components or ingredients; articles assembled in a beneficiary country from textile components cut to shape in the United States. (a) No article (except a textile article, apparel article, or petroleum, or any product derived from petroleum, provided for in heading 2709 or 2710, Harmonized Tariff Schedule of the United States (HTSUS)) shall be treated as a foreign article or as subject to duty: (1) If the article is assembled or processed in a beneficiary country in whole of fabricated components that are a product of the United States; or (2) If the article is processed in a beneficiary country in whole of ingredients (other than water) that are a product of the United States; and (3) Neither the fabricated components, materials or ingredients after their exportation from the United States, nor the article before its importation into the United States, enters into the commerce of any foreign country other than a beneficiary country. (b) No article (except a textile or apparel product) entered, or withdrawn from warehouse, for consumption on or after July 1, 1996, shall be treated as a foreign article or as subject to duty: (1) If the article is assembled in a beneficiary country in whole of textile components cut to shape (but not to length, width, or both) in the United States from foreign fabric; or (2) If the article is assembled in a beneficiary country in whole of both textile components described in paragraph (b)(1) of this section and components that are products of the United States; and (3) Neither the components after their exportation from the United States, nor the article before its importation into the United States, enters into the commerce of any foreign country other than a beneficiary country. (c) For purposes of this section: (1) The terms “textile article”, “apparel article”, and “textile or apparel product” cover all articles, other than footwear and parts of footwear, that are classifiable in an HTSUS subheading which carries a textile and apparel category number designation; (2) The term “beneficiary country” has the meaning set forth in § 10.191(b)(1); and (3) A component, material, ingredient, or article shall be deemed to have not entered into the commerce of any foreign country other than a beneficiary country if: (i) The component, material, or ingredient was shipped directly from the United States to a beneficiary country, or the article was shipped directly to the United States from a beneficiary country, without passing through the territory of any non-beneficiary country; or (ii) Where the component, material, ingredient, or article passed through the territory of a non-beneficiary country while en route to a beneficiary country or the United States: (A) The invoices, bills of lading, and other shipping documents pertaining to the component, material, ingredient, or article show a beneficiary country or the United States as the final destination and the component, material, ingredient, or article was neither sold at wholesale or retail nor subjected to any processing or other operation in the non-beneficiary country; or (B) The component, material, ingredient, or article remained under the control of the customs authority of the non-beneficiary country and was not subjected to operations in that non-beneficiary country other than loading and unloading and activities necessary to preserve the component, material, ingredient, or article in good condition. [T.D. 95-69, 60 FR 46197, Sept. 5, 1995] Free Entry—Articles for the Use of Foreign Military Personnel § 10.30c [Reserved] Temporary Importations Under Bond § 10.31 Entry; bond. (a)(1) Entry of articles brought into the United States temporarily and claimed to be exempt from duty under Chapter 98, Subchapter XIII, Harmonized Tariff Schedule of the United States (HTSUS), unless covered by an A.T.A. carnet or a TECRO/AIT carnet as provided in part 114 of this chapter, shall be made on Customs Form 3461 or 7533, supported by the documentation required by § 142.3 of this chapter. However, when § 10.36 or § 10.36a is applicable, or the aggregate value of the article is not over $250, the form prescribed for the informal entry of importations by mail, in baggage, or by other means, may be used. When entry is made on Customs Form 3461 or 7533, an entry summary, Customs Form 7501, shall be filed within 10 days after time of entry, in accordance with subpart B, part 142 of this chapter. (2) If Customs Form 7501, or its electronic equivalent, is filed at time of entry, it shall serve as both the entry and entry summary, and Customs Form 3461, or its electronic equivalent, or 7533 shall not be required. Customs Form 7501, or its electronic equivalent, shall be in original only, except for entries under subheading 9813.00.05, HTSUS, which require a duplicate copy for statistical purposes. When articles are entered under an A.T.A. carnet or a TECRO/AIT carnet, the importation voucher of the carnet shall serve as the entry. (3) In addition to the data usually shown on a regular consumption entry summary, each temporary importation bond entry summary shall include: (i) The HTSUS subheading number under which entry is claimed. (ii) A statement of the use to be made of the articles in sufficient detail to enable the Center director to determine whether they are entitled to entry as claimed, and (iii) A declaration that the articles are not to be put to any other use and that they are not imported for sale or sale on approval. (b) The port director, if he is satisfied as to the importer's identity and good faith, may admit a vehicle or craft brought in by a nonresident to take part in a race or other specific contest for which no money purse is awarded, under the provisions of subheading 9813.00.35, HTSUS, without formal entry or security for exportation. If at the time of arrival it appears that the article is likely to remain in the United States beyond 90 days, formal entry and bond shall be taken. (c) When any article has been admitted without formal entry or security for exportation and the importer thereafter desires to prolong his stay beyond 90 days, an entry covering the article and security for its exportation shall be accepted at any port where the article may be presented for entry. The time during which the imported article may remain in the United States under the entry shall be computed from the date of its original arrival in the United States. The estimated duties for the purpose of fixing the amount of any bond required by paragraph (f) of this section shall be the estimated duties which would have been required to be deposited had the article been entered under an ordinary consumption entry on the date of the original arrival. (d) [Reserved] (e) The entry or invoice shall: (1) Describe each article in detail; (2) set forth the value of each article; and (3) set forth any marks or numbers thereon or other distinguishing features thereof. In the case of a vehicle, aircraft, or pleasure boat entered under subheading 9813.00.05, HTSUS and § 10.36a, the registration number, and engine or motor number, and the body number (if available) shall also be shown on the entry. Examination of the imported articles shall be made whenever the circumstances warrant, and occasionally in any event to an extent which will enable the Customs officer to determine that the importation is in agreement with the invoice or entry as to identity and quantity and for the purpose of accepting the entry under the applicable provisions of Chapter 98, Subchapter XIII, HTSUS. No examination for the purpose of appraisement and no appraisement of the articles shall be made. (f) With the exceptions stated herein, a bond shall be given on CBP Form 301, containing the bond conditions set forth in § 113.62 of this chapter, in an amount equal to double the duties and fees, which it is estimated would accrue (or such larger amount as the Center director shall state in writing or by the electronic equivalent to the entrant is necessary to protect the revenue) had all the articles covered by the entry been entered under an ordinary consumption entry. In the case of samples solely for use in taking orders entered under subheading 9813.00.20, HTSUS, motion-picture advertising films entered under subheading 9813.00.25, HTSUS, and professional equipment, tools of trade and repair components for such equipment or tools entered under subheading 9813.00.50, HTSUS, the bond required to be given shall be in an amount equal to 110 percent of the estimated duties and fees, determined at the time of entry. If appropriate, a carnet, under the provisions of part 114 of this chapter, may be filed in lieu of a bond on CBP Form 301 (containing the bond conditions set forth in § 113.62 of this chapter). Cash deposits in the amount of the bond may be accepted in lieu of sureties. When the articles are entered under subheading 9813.00.05, 9813.00.20, or 9813.00.50, HTSUS without formal entry, as provided for in §§ 10.36 and 10.36a, or the amount of the bond taken under any subheading of Chapter 98, Subchapter XIII, HTSUS, is less than $25, the bond shall be without surety or cash deposit, and the bond shall be modified to so indicate. In addition, notwithstanding any other provision of this paragraph, in the case of professional equipment necessary for carrying out the business activity, trade or profession of a business person, equipment for the press or for sound or television broadcasting, cinematographic equipment, articles imported for sports purposes and articles intended for display or demonstration, if brought into the United States by a national of Canada or Mexico, or by a resident of Singapore, Chile, Morocco, Australia, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, Costa Rica, Bahrain, Oman, Peru, the Republic of Korea, Colombia, or Panama and entered under Chapter 98, Subchapter XIII, HTSUS, no bond or other security will be required if the entered article is a good originating, within the meaning of General Notes 11, 12, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, and 35, HTSUS, in the country of which the importer is a national or resident, as applicable. In the case of articles imported for sports purposes and articles intended for display or demonstration, if brought into the United States by a national of Canada or Mexico, the bond shall be without surety or cash deposit in an amount equal to 110 percent of the estimated duties and fees determined at the time of entry, if the entered article is not originating, within the meaning of General Notes 11 and 12, HTSUS, in the country of which the importer is a national. (g) Claim for free entry under Chapter 98, Subchapter XIII, HTSUS may be made for articles of any character described therein which have been previously entered under any other provision of law and the entry amended accordingly upon compliance with the requirements of this section, provided the articles have not been released from CBP custody, or even though released from CBP custody if it is established that the original entry was made on the basis of a clerical error, mistake of fact, or other inadvertence within the meaning of section 514(a), Tariff Act of 1930, as amended, and was brought to the attention of CBP within the time limits of that section. If an entry is so amended, the period of time during which the merchandise may remain in the customs territory of the United States under bond shall be computed from the date of importation. In the case of articles covered by an informal mail entry, such a claim may be made within a reasonable time either before or after the articles have been released from CBP custody. (h) After the entry and bond have been accepted, the articles may be released to the importer. The entry shall not be liquidated as the transaction does not involve liquidated duties. However, a TIB importer may be required to file an entry for consumption and pay duties, or pay liquidated damages under its bond for a failure to do so, in the case of merchandise imported under subheading 9813.00.05, HTSUS, and subsequently exported to Canada or Mexico ( see [28 FR 14663, Dec. 31, 1963] Editorial Note: For Federal Register www.govinfo.gov. § 10.33 Theatrical effects. For purposes of the entry of theatrical scenery, properties and apparel under subheading 9817.00.98, Harmonized Tariff Schedule of the United States: (a) Animals imported for use or exhibition in theaters or menageries may be classified as theatrical properties; and (b) The term “theatrical scenery, properties and apparel” shall not be construed to include motion-picture films. For provisions relating to the return without formal entry of theatrical effects taken from the United States, see § 10.68 of this part. [T.D. 92-85, 57 FR 40605, Sept. 4, 1992, as amended by CBP Dec. 04-28, 69 FR 52599, Aug. 27, 2004] § 10.35 Models of women's wearing apparel. (a) Models of women's wearing apparel admitted under subheading 9813.00.10, Harmonized Tariff Schedule of the United States (HTSUS), shall not be removed from the importer's establishment for reproducing, copying, painting, sketching, or for any other use by others, nor be used in the importer's establishment for such purposes except by the importer or his employees. (b) Invoices covering models of women's wearing apparel entered under subheading 9813.00.10 or 9813.00.25, HTSUS shall state the kind and color of the principal material from which the apparel is made, and shall contain a description of the lining and the trimming, stating whether composed of fur, lace, embroidery, or other material. Invoices shall also contain a statement as to how the trimming is applied, that is, whether on the cuffs, collar, sleeves, or elsewhere, and the total value of each completed garment or article. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 51248, Dec. 21, 1988] § 10.36 Commercial travelers' samples; professional equipment and tools of trade; theatrical effects and other articles. (a) Samples accompanying a commercial traveler who presents an adequate descriptive list or a special CBP invoice, and professional equipment, tools of trade, and repair components for such equipment or tools imported in his baggage for his own use by a nonresident sojourning temporarily in the United States may be entered on the importer's baggage declaration in lieu of formal entry and examination and may be passed under subheadings 9813.00.20 or 9813.00.50, Harmonized Tariff Schedule of the United States, (HTSUS), at the place of arrival in the same manner as other passengers' baggage. The examination may be made by an inspector who is qualified, in the opinion of the port director, to determine the amount of the bond required by § 10.31(c) to be filed in support of the entry. If the articles are a commercial traveler's samples and exceed $500 in value, a special Customs invoice or a descriptive list shall be furnished. (b) When the proprietor or manager of a theatrical exhibition arriving from abroad who has entered his scenery, properties, and apparel under subheading 9817.00.98, HTSUS, contemplates side trips to a contiguous country with the exhibition within the period of time during which the merchandise may remain in the customs territory of the United States under bond, including any lawful extension, a copy of the entry covering the effects and a copy of a descriptive list of such effects or invoice furnished by him may be certified by the examining officer and returned to the proprietor or manager for use in registering the effects with the CBP officers at the port of exit, and in clearing them through CBP on his return. Cancellation of the bond shall be effected by exportation in accordance with the provisions of § 10.38 at the time the theatrical effects are finally taken out of the United States before the expiration of the period of time during which the merchandise may remain in the customs territory of the United States under bond, including any lawful extension. Similar treatment may be accorded articles entered under other subheadings in chapter 98, subchapter XIII, HTSUS, upon approval by Headquarters, U.S. Customs and Border Protection. (c) When a commercial traveler contemplates side trips to a contiguous country within the period of time during which the merchandise may remain in the customs territory of the United States under bond, including any lawful extension, a copy of his baggage declaration and a copy of the descriptive list or special CBP invoice furnished by him may be certified by the examining officer and returned to the traveler for use in registering the samples with CBP officers at the port of exit, and in clearing them through CBP upon his return. Cancellation of the bond shall be effected by exportation in accordance with the provisions of § 10.38 at the time the samples are finally taken out of the United States before the expiration of the period of time during which the merchandise may remain in the customs territory of the United States under bond, including any lawful extension. (d) The privilege of clearance of commercial travelers' samples or professional equipment, tools of trade, and repair components for such equipment or tools imported for his own use by a nonresident sojourning temporarily in the United States on a baggage declaration under bond without surety or cash deposit shall not be accorded to a commercial traveler or such nonresident who, through fraud or culpable negligence, has failed to comply with the provisions of such a bond in connection with a prior arrival. Such a commercial traveler or nonresident shall be required to file a formal entry under subheading 9813.00.20 or subheading 9813.00.50, HTSUS with a bond supported by a surety or cash deposit in lieu of surety. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9799, June 25, 1969; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51248, Dec. 21, 1988; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.36a Vehicles, pleasure boats and aircraft brought in for repair or alteration. (a) A vehicle (such as an automobile, truck, bus, motorcycle, tractor, trailer), pleasure boat, or aircraft brought into the United States by an operator of such vehicle, pleasure boat, or aircraft for repair or alteration (with repair or alteration defined as restoration, addition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment that does not destroy the essential characteristics of, or create a new or commercially different good from, the good imported into the United States) may be entered on the operator's baggage declaration, in lieu of formal entry and examination, and may be passed under subheading 9813.00.05, Harmonized Tariff Schedule of the United States (HTSUS), at the place of arrival in the same manner as passengers' baggage. When the vehicle, aircraft, or pleasure boat to be entered is being towed by or transported on another vehicle, the operator of the towing or transporting vehicle may make entry for the vehicle, aircraft or pleasure boat to be repaired or altered. The bond, prescribed by § 10.31(f), filed to support entry under this section, shall be without surety or cash deposit except as provided by this paragraph and paragraph (d) of this section. The examination may be made by an inspector who is qualified to determine the amount of such bond to be filed in support of the entry. The privilege accorded by this paragraph shall not apply when two or more vehicles, pleasure boats, or aircraft are to be entered by the same importer under subheading 9813.00.05, HTSUS, at the same time. In that event, the importer must file a formal entry supported by bond with surety or cash deposit in lieu of surety. (b) Each vehicle, pleasure boat, or aircraft to which paragraph (a) of this section is applicable shall be identified on the operator's baggage declaration, which must include the data prescribed in paragraphs (a) and (e) of § 10.31. (c) Exportation shall be effected in accordance with the provisions of § 10.38. (d) The privilege of clearance of a vehicle, pleasure boat, or aircraft brought in by the operator of such vehicle, pleasure boat, or aircraft, for repair or alteration on his baggage declaration under bond without surety or cash deposit shall not be granted to an individual who has failed to comply with the provisions of such a bond in connection with any prior arrival. Such individual shall be required to file a formal entry under subheading 9813.00.05, HTSUS, with a bond supported by a surety or cash deposit in lieu of surety. [T.D. 66-39, 31 FR 2817, Feb. 17, 1966, as amended by T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51248, Dec. 21, 1988; T.D. 94-1, 58 FR 69470, Dec. 30, 1993; CBP Dec. 05-07, 70 FR 10872, Mar. 7, 2005; CBP Dec. 07-28, 72 FR 31995, June 11, 2007; CBP Dec. 24-18, 90 FR 6479, Jan. 17, 2025] § 10.37 Extension of time for exportation. The period of time during which merchandise entered under bond under chapter 98, subchapter XIII, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), may remain in the customs territory of the United States, may be extended for not more than two further periods of 1 year each, or such shorter period as may be appropriate. Extensions may be granted by the Center director upon written application on CBP form 3173, which may be submitted to CBP, either at the port of entry or electronically provided the articles have not been exported or destroyed before the receipt of the application, and liquidated damages have not been assessed under the bond before receipt of the application. Any untimely request for an extension of time for exportation shall be referred to the Director, Commercial and Trade Facilitation Division, Office of International Trade, CBP Headquarters, for disposition. Any request for relief from a liquidated damage assessment in excess of a Fines, Penalties, and Forfeitures Officer's delegated authority shall be referred to the Director, Border Security and Trade Compliance Division, Office of International Trade, CBP Headquarters, for disposition. No extension of the period for which a carnet is valid shall be granted. [T.D. 69-146, 34 FR 9799, June 25, 1969, as amended by T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 91-77, 56 FR 46114, Sept. 10, 1991; T.D. 99-27, 64 FR 13675, Mar. 22, 1999] § 10.38 Exportation. (a) Articles entered under chapter 98, subchapter XIII, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202) may be exported at the port of entry or at another port. An application on Customs Form 3495 shall be filed in duplicate with the port director a sufficient length of time in advance of exportation to permit the examination and identification of the articles if circumstances warrant such action and, in such event, the applicant shall be notified on a copy of Customs Form 3495 where the articles are to be sent for identification. If a carnet was used for entry purposes, the reexportation voucher of the carnet shall be filed, in addition to Customs Form 3495, and the carnet shall be presented for certification. (b) All expenses in connection with the delivery of the articles for examination, the cording and sealing of such articles, and their transfer for exportation shall be paid by the parties in interest. (c) If exportation is to be made at a port other than the one at which the merchandise was entered, the application on Customs Form 3495 shall be filed in triplicate. There shall also be filed with the application a certified copy of the import entry or a certified copy of the invoice used on entry. (d) If the goods are examined at one port and are to be exported from another port, they shall be forwarded to the port of exportation under a transportation and exportation entry. In such cases Customs Form 3495 shall be filed in triplicate. Articles entered under a carnet shall not be examined elsewhere than at the port from which they are to be exported. (e) If the articles are to be exported by mail or parcel post, the package containing the articles must be mailed under Customs supervision after examination. Waiver of the right to withdraw the package from the mails shall be endorsed on each package to be so exported and signed by the exporter. (f) Whenever the circumstances warrant, and occasionally in any event, port directors shall cause the fact of exportation to be verified by the Office of Enforcement in harmony with the procedures provided for in §§ 18.7 and 191.61 of this chapter. (g) Upon the presentation of satisfactory evidence to the director of the port at which samples were entered under subheading 9813.00.20, HTSUS, or professional equipment or tools of trade were entered under subheading 9813.00.50, HTSUS, that such articles cannot be exported for the reason that they have been seized (other than by seizure at the suit of private persons), the requirement of exportation shall be suspended for the duration of the seizure. The articles shall be exported promptly after release from seizure. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9799, June 25, 1969; T.D. 83-212, 48 FR 46771, Oct. 14, 1983; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 91-77, 56 FR 46114, Sept. 10, 1991; T.D. 98-16, 63 FR 11004, Mar. 5, 1998] § 10.39 Cancellation of bond charges. (a) Charges against bonds taken pursuant to Chapter 98, Subchapter XIII, Harmonized Tariff Schedule of the United States, (HTSUS), may be canceled in the manner prescribed in § 113.55 of this chapter. A completed reexportation counterfoil on a carnet establishes that the articles covered by the carnet have been exported, and no claim shall be brought against the guaranteeing association under the carnet for failure to export, except under the provisions of § 114.26 of this chapter. In the case of articles entered under subheading 9813.00.30, HTSUS, which are destroyed because of their use for the purposes of importation, the bond charge shall not be canceled unless there is submitted to the Center director a certificate of the importer that the articles were destroyed during the course of a specifically described use, and the Center director is satisfied that the articles were so destroyed as articles of commerce within the period of time during which the articles may remain in the Customs territory of the United States under bond (including any lawful extension). Bonds covering articles entered under other provisions of law shall not be canceled upon proof of destruction, except as provided for in paragraph (c) of this section, unless the articles are destroyed under Customs supervision in accordance with section 557, Tariff Act of 1930, as amended, and § 158.43 of this chapter. (b) Where exportation has been made at a port other than the port of entry, the bond may be canceled upon the certificate of lading received from the port of exportation, showing that such exportation was made within the period of time during which the articles may remain in the Customs territory of the United States under bond. In addition, the Center director may require the production of a landing certificate signed by a revenue officer of the country to which the merchandise is exported. (c) When articles entered temporarily free of duty under bond are destroyed within the bond period by death, accidental fire, or other casualty, petition for relief from liability under the bond shall be made to the United States Customs Service. The petition shall be accompanied by a statement of the importer, or other person having knowledge of the facts, setting forth the circumstances of the destruction of the articles. (d)(1) If any article entered under Chapter 98, subchapter XIII, HTSUS, except those entered under a carnet, has not been exported or destroyed in accordance with the regulations in this part within the period of time during which the articles may remain in the Customs territory of the United States under bond (including any lawful extension), the Fines, Penalties, and Forfeitures Officer shall make a demand in writing under the bond for the payment of liquidated damages equal to double the estimated duties applicable to such entry, unless a different amount is prescribed by § 10.31(f). The demand shall include a statement that a written petition for relief from the payment of the full liquidated damages may be filed with the Fines, Penalties, and Forfeitures Officer within 60 days after the date of the demand. For purposes of this section, the term estimated duties shall include any merchandise processing fees applicable to such entry. (2) If articles entered under a carnet have not been exported or destroyed in accordance with the regulations in this part within the carnet period, the port director shall promptly after expiration of that period make demand in writing upon the importer and guaranteeing association for the payment of liquidated damages in the amount of 110 percent of the estimated duties on the articles not exported or destroyed. The guaranteeing association shall have a period of 6 months from the date of claim in which to furnish proof of the exportation or destruction of the articles under conditions set forth in the Convention or Agreement under which the carnet is issued. If such proof is not furnished within the 6-month period, the guaranteeing association shall forthwith pay the liquidated damages provided for above. The payment shall be refunded if the guaranteeing association within 3 months from the date of payment furnishes the proof referred to above. No claim for payment under a carnet covering a temporary importation may be made against the guaranteeing association more than 1 year after the expiration of the period for which the carnet was valid. (3) Demand for return to Customs custody. When the demand for return to Customs custody is made in the case of merchandise entered under Chapter 98, subchapter XIII, HTSUS (19 U.S.C. 1202), liquidated damages in an amount equal to double the estimated duties on the merchandise not returned shall be demanded, except that in the case of samples solely for use in taking orders, motion-picture advertising films, professional equipment, tools of trade, and repair components for professional equipment and tools of trade, the liquidated damages demanded shall be in an amount equal to 110 percent of the estimated duties. (e) If there has been a default with respect to any or all of the articles covered by the bond and a written petition for relief is filed as provided in part 172 of this chapter, it will be reviewed by the Fines, Penalties, and Forfeitures Officer having jurisdiction in the port where the entry was filed. If the Fines, Penalties, and Forfeitures Officer is satisfied that the importation was properly entered under Chapter 98, subchapter XIII, and that there was no intent to defraud the revenue or delay the payment of duty, the Fines, Penalties, and Forfeitures Officer may cancel the liability for the payment of liquidated damages in any case in his or her delegated authority as follows: (1) If evidence is furnished which satisfies the Fines, Penalties, and Forfeitures Officer that the article would have been entitled to free entry as domestic products exported and returned had the evidence been furnished at the time of entry, without the collection of liquidated damages. (2) If the article has been exported or destroyed under Customs supervision but not within the period of time during which the articles may remain in the Customs territory of the United States under bond, upon the payment of such lesser amount as the port director may deem appropriate under the law and in view of the circumstances, or without the collection of liquidated damages if the Fines, Penalties, and Forfeitures Officer is satisfied that the delay in exportation or destruction was for the benefit of the United States or was occasioned wholly by circumstances reasonably beyond the control of the parties concerned and which could not have been anticipated by a reasonably prudent person. (3) If the article was exported or destroyed within the period of time during which the articles may remain in the Customs territory of the United States under bond but not under Customs supervision and satisfactory documentary evidence of actual exportation, such as a foreign landing certificate, or of death or other complete destruction, such as a veterinarian's certificate or certificates of two disinterested witnesses, are furnished together with a complete explanation by the applicant of the failure to obtain Customs supervision, upon the payment of such lesser amount as the Fines, Penalties, and Forfeitures Officer may deem appropriate under the law and in view of the circumstances, or without the collection of liquidated damages if the port director is satisfied that the merchandise was destroyed under circumstances which precluded any arrangement to obtain Customs supervision. Satisfactory documentary evidence of exportation, in the case of carnets, would include the particulars regarding importation or reimportation entered in the carnet by the Customs authorities of another contracting party, or a certificate with respect to importation or reimportation issued by those authorities, based on the particulars shown on a voucher which was detached from the carnet on importation or reimportation into their territory, provided it is shown that the importation or reimportation took place after the exportation which it is intended to establish. (4) Upon the payment of an amount equal to double the duty which would have accrued on the articles had they been entered under an ordinary consumption entry, or equal to 110 percent of such duties where that percentage is prescribed in § 10.31(f), if such amount is determined to be less than the full amount of the bond. (f) Anticipatory breach. (g) If the petitioner is not satisfied with the port director's action under this section and submits a supplemental petition, both the original and the supplemental petitions shall be transmitted to the designated Headquarters official with a full report on the case. [28 FR 14663, Dec. 31, 1963] Editorial Note: For Federal Register www.govinfo.gov. § 10.40 Refund of cash deposits. (a) When a cash deposit is made in lieu of surety, it shall be refunded to the person in whose name the entry is made upon exportation in compliance with § 10.38. (b) If any article entered under Chapter 98, subchapter XIII, Harmonized Tariff Schedule of the United States, is not exported or destroyed within the period of time during which articles may remain in the customs territory of the United States under bond (including any lawful extension), the Center director shall notify the importer in writing that the entire cash deposit will be transferred to the regular account as liquidated damages unless a written application for relief from the payment of the full liquidated damages is filed with the Center director within 60 days after the date of the notice. If such an application is timely filed, the transfer of the cash deposit to the regular account as liquidated damages shall be deferred pending the decision of the Headquarters, U.S. Customs and Border Protection or, in appropriate cases, the Center director on the application. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 41249, Dec. 21, 1988; CBP Dec. 16-26, 81 FR 93013, Dec. 20, 2016] International Traffic § 10.41 Instruments; exceptions. (a) Locomotives and other railroad equipment, trucks, buses, taxicabs, and other vehicles used in international traffic shall be subject to the treatment provided for in part 123 of this chapter. (b) [Reserved] (c) Foreign-owned aircraft arriving in the United States shall be subject to the treatment provided for in part 122 of this chapter, unless entered under the provisions of §§ 10.31, 10.183, or paragraph (d) of this section. (d) Any foreign-owned locomotive or other railroad equipment, truck, bus, taxicab, or other vehicle, aircraft, or undocumented boat brought into the United States for the purpose of carrying merchandise or passengers between points in the United States for hire or as an element of a commercial transaction, except as provided at §§ 123.12 (a) and (b), 123.14(c), and 141.4(b)(4), is subject to treatment as an importation of merchandise from a foreign country and a regular entry for such vehicle, aircraft or boat will be made. The use of any such vehicle, aircraft, or boat without a proper entry having been made may result in liabilities being incurred under section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592). (e) [Reserved] (f) Material for the maintenance or repair of international cables under the high seas, if requiring storage in special tanks for preservation, may be placed in tanks specially bonded for the purpose and withdrawn therefrom for high-seas installation without the payment of duty and without limitation of the storage period to the usual 3-year warehousing period. International cables laid under the territorial waters of the United States but not brought on shore in the United States shall be admitted without entry or the payment of duty. With respect to international cables laid under the territorial waters of the United States but brought on shore in the United States, only that part of the cable in the United States between the point of entry into the territorial waters of the United States and the first point of support on land in the United States shall be admitted without the payment of duty. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 70-121, 35 FR 8222, May 26, 1970; T.D. 79-160, 44 FR 31956, June 4, 1979; T.D. 84-109, 49 FR 19450, May 8, 1984; T.D. 88-12, 53 FR 9315, Mar. 22, 1988; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; T.D. 99-79, 64 FR 61205, Nov. 10, 1999] § 10.41a Lift vans, cargo vans, shipping tanks, skids, pallets, and similar instruments of international traffic; repair components. (a)(1) Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby designated as “instruments of international traffic” within the meaning of section 322(a), Tariff Act of 1930, as amended. The Commissioner of Customs is authorized to designate as instruments of international traffic, in decisions to be published in the weekly Customs Bulletin, such additional articles or classes of articles as he shall find should be so designated. Such instruments may be released without entry or the payment of duty, subject to the provisions of this section. (2) Repair components, accessories, and equipment for any container of foreign production which is an instrument of international traffic may be entered or withdrawn from warehouse for consumption without the deposit of duty if the person making the entry or withdrawal from warehouse files a declaration that the repair component was imported to be used in the repair of a container of foreign production which is an instrument of international traffic, or that the accessory or equipment is for a container of foreign production which is an instrument of international traffic. The Center director must be satisfied that the importer of the repair component, accessory, or equipment had the declared intention at the time of importation. (3) As used in this section, “instruments of international traffic” includes the normal accessories and equipment imported with any such instrument which is a “container” as defined in Article 1 of the Customs Convention on Containers. (b) The reexportation of a container, as defined in Article 1 of the Customs Convention on Containers, which has become badly damaged, shall not be required in the case of a duly authenticated accident if the container (1) is subjected to applicable import duties and import taxes, or (2) is abandoned free of all expense to the Government or destroyed under Customs supervision at the expense of the parties concerned, following the procedure outlined in § 158.43(c) of this chapter. Any salvaged parts and materials shall be subjected to applicable import duties and import taxes. Replaced parts which are not reexported shall be subjected to import duties and import taxes except where abandoned free of expense to the Government or destroyed under Customs supervision at the expense of the parties concerned. (c) The instruments of international traffic designated in paragraph (a) of this section may be released in accordance with the provisions of that paragraph only after the applicant for such release has filed a bond on Customs Form 301, containing the bond conditions set forth in § 113.66 of this chapter. The required application may be filed at the port of arrival or at a subsequent port to which an instrument shall have been transported in bond or to which a container shall have been moved under cover of a TIR carnet (see part 114 of this chapter) showing the characteristics and value of the container on the Goods Manifest of the carnet. If the container is listed on the Goods Manifest of the carnet, the application may be filed at the port of arrival or at the subsequent port. If the container is not listed on the Goods Manifest, the application shall be filed at the port of arrival. When the application is filed at a port other than the port at which the bond is on file, the following procedure applies: (1) When the application is filed before the fact of approval of the applicant's bond has been established, the applicant must submit with the application, or the Customs officer to whom the application is made must obtain, evidence that a current bond is on file at another port. That evidence may consist of a certified copy of the bond, or any other evidence which will satisfy the Customs officer to whom the application is made that a current bond is on file at another port. (2) If the application is filed after the fact of approval of the applicant's bond has been established, a certified copy of that bond need not be filed at the port of release. Upon determination by the appropriate Customs officer that the fact of approval of the applicant's bond has been established, and the bond has not been subsequently discontinued, the instruments of international traffic will be released as provided for in paragraph (a) of this section. (3) Upon the request of the applicant, the appropriate Customs officer at the port at which the instruments of international traffic are to be released will determine whether or not the fact of approval of the applicant's bond has been established. If the approval has not been established, the Customs officer with whom the application has been filed will advise the applicant of the nature of the evidence required to establish the fact that a current bond is on file at another port. (d) If an instrument of foreign origin, or of United States origin which has been increased in value or improved in condition by a process of manufacture or other means while abroad, is released under this section and is subsequently diverted to point-to-point local traffic within the United States, or is otherwise withdrawn in the United States from its use as an instrument of international traffic, it becomes subject to entry and the payment of any applicable duties. An instrument of United States origin which has not been increased in value or improved in condition by a process of manufacture or other means while abroad and which is released under this section shall not be subject to entry or the payment of duty if it is so diverted or otherwise withdrawn. (e) The person who filed the application for release under paragraph (a)(1) of this section shall promptly notify a director of a port of entry in the United States as defined in Section 401(k), Tariff Act of 1930, as amended, (1) that the container is to be abandoned or destroyed, as described in paragraph (b) of this section, or (2) that the instrument is the subject of a diversion or withdrawal as described in paragraph (d) of this section, in which event he shall file with CBP, either at the port of entry or electronically a consumption entry for the instrument and pay all import duties and import taxes due on the container or instrument at the rate or rates in effect and in its condition on the date of such diversion or withdrawal. (f)(1) Except as provided in paragraph (j) of this section, an instrument of international traffic (other than a container as defined in Article 1 of the Customs Convention on Containers that is governed by paragraphs (g) (1)-(3) of this section) may be used as follows in point-to-point traffic, provided such traffic is incidental to the efficient and economical utilization of the instrument in the course of its use in international traffic: (i) Picking up and delivering loads at intervening points in the United States while en route between the port of arrival and the point of destination of its imported cargo; or (ii) Picking up and delivering loads at intervening points in the United States while en route from the point of destination of imported cargo to a point where export cargo is to be loaded or to an exterior port of departure by a reasonably direct route to, or nearer to, the place of such loading or departure. (2) Neither use as enumerated in paragraph (f)(1)(i) or (ii) of this section constitutes a diversion to unpermitted point-to-point local traffic within the United States or a withdrawal of an instrument in the United States from its use as an instrument of international traffic under this section. (g)(1) Except as provided in paragraph (j) of this section, a container (as defined in Article 1 of the Customs Convention on Containers) that is designated as an instrument of international traffic is deemed to remain in international traffic provided that the container exits the United States within 365 days of the date on which it was admitted under this section. A container that is designated as an instrument of international traffic and admitted from Canada or Mexico is deemed to remain in international traffic beyond this 365-day time limit when CBP grants an extension, at the request of the person who filed the application for release under paragraph (a)(1) of this section, provided that the container exits the United States prior to the date of expiration of the extension granted. An exit from the United States in this context means a movement across the border of the United States into a foreign country where either: (i) All merchandise is unladen from the container; or (ii) Merchandise is laden aboard the container (if the container is empty). (2) The person who filed the application for release under paragraph (a)(1) of this section is responsible for keeping and maintaining such records, otherwise generated and retained in the ordinary course of business, as may be necessary to establish the international movements of the containers. Such records shall be made available for inspection by Customs officials upon reasonable notice. (3) If the container does not exit the United States within 365 days of the date on which it is admitted under this section, or, by the date on which an extension granted under paragraph (g)(1) of this section expires, such container shall be considered to have been removed from international traffic, and entry for consumption must be made within 10 business days after the end of the month in which the container is deemed removed from international traffic. When entry is required under this section, any containers considered removed from international traffic in the same month may be listed on one entry. Such entry may be made at any port of entry. Under 19 U.S.C. 1484(a)(1)(B), the importer of record is required, using reasonable care, to complete the entry by filing with CBP the declared value, classification and rate of duty applicable to the merchandise. The importer of record must use the value of the container as determined in accordance with section 402, Tariff Act of 1930 (19 U.S.C. 1401a), as amended by the Trade Agreements Act of 1979 (TAA). (h) For failure promptly to report the diversion or withdrawal or promptly to make the required entry and pay the duties due, the applicant shall be liable for the payment of liquidated damages equal to the domestic value of the instrument established in accordance with Section 606, Tariff Act of 1930. (i) When an instrument of international traffic, as provided in paragraph (a) of this section, is returned to the United States and released in accordance with the provisions of that paragraph, any repairs which may have been made to the instrument while it was abroad are not subject to entry or the payment of duty whether the instrument is of foreign or domestic manufacture, whether it left the United States empty or loaded, and whether or not the repairs made abroad were in contemplation when the instrument left the United States. (j) Containers and other articles designated as instruments of international traffic in accordance with this section are nevertheless subject to the application of the coastwise laws of the United States, with particular reference to Section 883, Title 46, United States Code (see § 4.93 of this chapter). [28 FR 14663, Dec. 31, 1963] Editorial Note: For Federal Register www.govinfo.gov. § 10.41b Clearance of serially numbered substantial holders or outer containers. (a) The holders and containers described in this section may be released without entry or the payment of duty, subject to the provisions of this section. (b) Subject to the approval of a port director pursuant to the procedures described in this paragraph, certain foreign- or U.S.-made shipping devices arriving from Canada or Mexico, including racks, holders, pallets, totes, boxes and cans, need not be serially numbered or marked if they are always transported on or within either intermodal and similar containers or containers which are themselves vehicles or vehicle appurtenances and accessories such as twenty and forty foot containers of general use and “igloo” air freight containers. The following or similar notation shall appear on the vehicle or vessel manifest in relation to such shipping devices which are exempt from serial numbering or marking requirements pursuant to this paragraph: “The shipping devices transported herein, which are not serially numbered or marked, have been exempted from such requirement pursuant to an application approved under 19 CFR 10.41b(b).” Also, pallets and other solid wood shipping devices must be accompanied by an importer document, to the extent that this is required by the U.S. Department of Agriculture, Animal and Plant Health Inspection Service, attesting to the admissibility of such devices as regards plant pest risk, as provided for in 7 CFR 319.40-3. (1) An importer or his agent, regardless of whether the importer is the owner of the foreign- or U.S.-manufactured shipping devices, may apply to a port director of Customs at one of the importer's chiefly utilized Customs ports or the port within which the importer's or agent's recordkeeping center is located for permission to have such shipping devices arriving from Canada or Mexico released without entry and payment of duty at the time of arrival and without the devices being serially numbered or marked. Application may be filed in only one port. Although no particular format is specified for the application, it must contain the information enumerated in paragraph (b)(2) of this section. Any duty which may be due on these shipping devices shall be tendered and paid cumulatively at the time specified in an approved application, which may be either before or after the arrival of the shipping devices in the U.S. (such as, at the time a contract, purchase order or lease agreement is issued). (2) The application shall: (i) Describe the types of shipping devices covered, their classification under the Harmonized Tariff Schedule of the U.S. (HTSUS), their countries of origin, and whether and to whom required duty was paid for them or when it will be paid for them, including duties for repair and modifications to such shipping devices while outside the U.S.; (ii) Identify the intended ports where it is anticipated the shipping devices will be arriving and departing the U.S., as well as the particular movements and conveyances in which they are intended to be utilized; (iii) Describe the applicant's proposed program for accounting for and reporting these shipping devices; (iv) Identify the reporting period (which shall in no event be less frequent than annual), as well as the payment period within which applicable duty and fees must be tendered (which shall in no event exceed 90 days following the close of the related reporting period); (v) Describe the type of inventory control and recordkeeping, including the specific records, to be maintained to support the reports of the shipping devices; and (vi) Provide the location in the United States, including the name and address, where the records supporting the reports will be retained by law and will be made available for inspection and audit upon reasonable notice. (The records supporting the reports of the shipping devices must be kept for a period of at least 3 years from the date such reports are filed with the port director.) (3) The application shall be filed along with a continuous bond containing the conditions set forth in § 113.66(c) of this chapter. If the application is approved by the port director and the conditions set forth in the application or of the bond are violated, the port director may issue a claim for liquidated damages equal to the domestic value of the container. If the domestic value exceeds the amount of the bond, the claim for liquidated damages will be equal to the amount of the bond. (4) The port director receiving the application shall evaluate the program proposed to account for, report and maintain records of the shipping devices. The port director may suggest amendments to the applicant's proposal. The port director shall notify the applicant in writing of his decision on the application within 90 days of its receipt, unless this period is extended for good cause and the applicant is so informed in writing. Approval of the application by the port director with whom it is filed shall be binding on all Customs ports nationwide. (5) If the decision is to deny the application, in whole or in part, the port director shall specify the reason for the denial in a written reply, and inform the applicant that such denial may be appealed to the Assistant Commissioner, Office of Field Operations, Customs Headquarters, within 21 days of its date. The Assistant Commissioner's decision shall be issued, in writing, within 30 days of the receipt of the appeal, and shall constitute the final Customs determination concerning the application. (6) If the application is approved, an importer may later apply to amend his application to add or delete particular types of shipping devices listed in the application in which the procedures set forth in the application may be utilized. If a requested amendment to an approved application should be denied, or if an approved application should be revoked, in whole or in part, by the port director, the procedures described in paragraph (b)(5) of this section shall apply. (7) Application for and approval of a reporting program shall not limit or restrict the use of other alternative means for obtaining the release of holders, containers and shipping devices. (c) In the case of serially numbered holders or containers of United States manufacture for which free clearance under subheading 9801.00.10, Harmonized Tariff Schedule of the United States, is claimed, the owner shall place thereon the following markings: (1) 9801.00.10, unless the holder or container has permanently attached thereto the manufacturer's metal tag or plate showing, among other things, the name and address of the manufacturer who is located in the United States. (2) The name of the owner, either positioned as indicated in the example below, or elsewhere conspicuously shown on the holder or container. (3) The serial number assigned by the owner, which shall be one of consecutive numbers and not to be duplicated. For example: 9801.00.10 * * * Zenda * * * 2468. (d)(1) In the case of serially numbered holders or containers of foreign manufacture, other than those provided for in paragraph (d)(2) of this section, for which free clearance under the second provision in subheading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, the owner shall place thereon the following markings: (i) 9803.00.50. (ii) The district and port code numbers of the port of entry, the entry number, and the last two digits of the fiscal year of entry covering the importation of the holders and containers on which duty was paid. (iii) The name of the owner, either positioned as indicated in the example below, or elsewhere conspicuously shown on the holder or container. (iv) The serial number assigned by the owner, which shall be one of consecutive numbers and not to be duplicated. For example: 9803.00.50 * * * 10-1-366-63 * * * Zenda * * * 2468. (2) In the case of substantial holders or containers of either U.S. or foreign manufacture, specially designed and equipped to facilitate the carriage of goods by one or more modes of transport without intermediate reloading, each having a gross mass rating of at least 18,120 kilograms, for which duty-free entry is requested under either the first or the second proviso in subheading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, only the following clear, conspicuous and durable markings are required to be on the container: (i) The identity of the owner or operator of the container. (ii) The serial number assigned by the owner or operator of the container, which shall be one of consecutive numbers and shall not be duplicated. (e) The prescribed markings shall be clear and conspicuous, that is, they shall appear on an exposed side of the holder or container in letters and figures of such size as to be readily discernible. The markings will be stricken out or removed when the holders or containers are taken out of service or when ownership is transferred, except that appropriate changes may be made if a new owner wishes to use the holders and containers under this procedure. (f) The owner shall keep adequate records open to inspection by Customs officers, which shall show the current status of the serially numbered holders and containers in service and the disposition made of such holders and containers taken out of service. (g) Nothing in this procedure shall be deemed to affect: (1) The requirements for outward or inward manifesting of such holders or containers. The manifests will show for each holder or container its markings as provided for herein. (2) The requirements of the Department of Commerce on exportation with respect to the filing of Electronic Export Information (EEI). (3) The treatment of articles covered herein under the coastwise laws of the United States, with particular reference to section 883, Title 46, United States Code. (h) If the holder or container and its contents are to move in bond or under cover of a TIR carnet (see part 114 of this chapter) from the port of arrival intact, the holder or container shall appear on the inward foreign manifest so as to be related to the cargo contained therein and will be released under this procedure at a subsequent port. If the holder or container is to move in bond or under cover of a TIR carnet from the port of arrival not intact with its contents, the holder or container may appear on the inward foreign manifest separate from and not related to the cargo contained therein and will be released under this procedure at the port of arrival before it moves forward and will not appear on the in-bond document. (i) A continuous bond containing the conditions set forth in § 113.66 of this chapter shall be filed with the port director. If the conditions are violated the port director shall issue a claim for liquidated damages equal to the domestic value of the holder or container established in accordance with section 606, Tariff Act of 1930, as amended (19 U.S.C. 1606). If the domestic value exceeds the amount of the bond the claim for liquidated damages will be equal to the amount of the bond. [T.D. 56542, 30 FR 15143, Dec. 8, 1965, as amended by T.D. 71-70, 36 FR 4485, Mar. 6, 1971; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 86-13, 51 FR 4164, Feb. 3, 1986; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 96-20, 61 FR 7989, Mar. 1, 1996; T.D. 97-82, 62 FR 51769, Oct. 3, 1997; T.D. 99-64, 64 FR 43265, Aug. 10, 1999; CBP Dec. 17-06, 82 FR 32238, July 13, 2017] Articles for Institutions § 10.43 Duty-free status. (a) The Center director may, at his discretion, require appropriate proof of duty-free status for articles for institutions claimed to be exempt from duty under subheadings 9810.00.05, 9810.00.15, 9810.00.25, 9810.00.30, 9810.00.40, 9810.00.45, 9810.00.50, 9810.00.55, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202). (b) Appropriate proof may be a copy of the charter or other evidence of the character of the institution for the use of which the articles are imported. [T.D. 85-123, 50 FR 29953, July 23, 1985, as amended by T.D. 89-1, 53 FR 51249, Dec. 21, 1988] § 10.46 Articles for the United States. Pursuant to subheadings 9808.00.10 and 9808.00.20, books, engravings, and other articles therein enumerated, which are imported by authority or for the use of the United States or for the use of the Library of Congress, shall be admitted free of duty upon the written request of the head of the bureau or executive department concerned. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 67-108, 32 FR 6392, Apr. 25, 1967; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997] § 10.47 [Reserved] Works of Art § 10.48 Engravings, sculptures, etc. (a) Invoices covering works of art claimed to be free of duty under subheadings 9702.00.00 and 9703.00.00, HTSUS, shall show whether they are originals, replicas, reproductions, or copies, and also the name of the artist who produced them, unless upon examination the Customs officer is satisfied that such statement is not necessary to a proper determination of the facts. (b) The following evidence shall be filed in connection with the entry: A declaration, or its electronic equivalent, in the following form by the artist who produced the article, or by the seller, shipper or importer, showing whether it is original, or in the case of sculpture, the original work or model, or one of the first twelve castings, replicas, or reproductions made from the original work or model; and in the case of etchings, engravings, woodcuts, lithographs, or prints made by other hand-transfer processes, that they were printed by hand from hand-etched, hand-drawn, or hand-engraved plates, stones, or blocks: I, ________, do hereby declare that I am the producer, seller, shipper or importer of certain works of art, namely ________ covered by the annexed invoice dated ________; that any sculptures or statuary included in that invoice are the original works or models or one of the first twelve castings, replicas, or reproductions made from the sculptor's original work or model; and that any etchings, engravings, woodcuts, lithographs, or prints made by other hand-transfer processes included in that invoice were printed by hand from hand-etched, hand-drawn, or hand-engraved plates, stones, or blocks. (c) The Center director may waive the declaration requirement set forth in paragraph (b) of this section. (d) Artists' proof etchings, engravings, woodcuts, lithographs, or prints made by other hand-transfer processes should bear the genuine signature or mark of the artist as evidence of their authenticity. In the absence of such a signature or mark, other evidence shall be required which will establish the authenticity of the work to the satisfaction of the Center director. [T.D. 94-3, 58 FR 68742, Dec. 29, 1993, as amended by CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.49 Articles for exhibition; requirements on entry. (a) There shall be filed in connection with the entry of works of art and other articles claimed to be free of duty under Chapter 98, Subchapter XII, Harmonized Tariff Schedule of the United States (HTSUS), a declaration, or its electronic equivalent, by a qualified officer of the institution in sufficient detail to demonstrate entitlement to entry as claimed, and a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter. Claim for free entry under Chapter 98, Subchapter XII may be made for articles of the character described therein which have been previously entered under any other provision of law and the entry amended accordingly upon compliance with the requirements of this section, provided the articles have not been released from Customs custody. (b) The Center director may require a copy of the charter or other evidence of the character of the institution for which the articles are imported, and may also require the production of the original of any order given by such society or institution to any importing agent or dealer for such articles. The society or institution shall file, within 6 months after the date of filing the entry, any document or proof demanded by the Center director in connection with the entry. (c) Articles entered under subheading 9812.00.20, HTSUS, may be transferred from one institution to another upon an application in writing in the case of each transfer describing the articles and stating the name of the institution to which transfer is to be made, provided the sureties to the bond assent in writing under seal or a new bond is filed. No entry or withdrawal shall be required for such a transfer. (d) If any of the articles accorded free entry under Chapter 98, Subchapter XII shall be sold, offered or exposed for sale, transferred, or used in any manner contrary to the provisions of the regulations in this part, within 5 years after the date of entry under such part, the amount of the duties shall be collected immediately by the CBP, either at the port of entry or electronically and deposited as duties. If the articles are exported or destroyed under Customs supervision within such 5-year period, the liability under the bond shall be treated as terminated. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 92-85, 57 FR 40605, Sept. 4, 1992; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.50 [Reserved] § 10.52 Painted, colored or stained glass windows for religious institutions. When painted, colored, or stained glass windows or parts thereof, are claimed free of duty under subheading 9810.00.10, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), the Center director may, at his discretion, require appropriate proof that the importation was designed by, and produced by or under the direction of, a professional artist, and that it is for the use of an institution established solely for religious purposes. [T.D. 85-123, 50 FR 29953, July 23, 1985, as amended by T.D. 89-1, 53 FR 51250, Dec. 21, 1988] § 10.53 Antiques. (a) Articles accompanying a passenger and entitled to entry under the passenger's declaration and entry, or articles entered under an informal entry which are claimed to be free of duty under subheading 9706.00.00, Harmonized Tariff Schedule of the United States (HTSUS), may be admitted free of duty upon the execution of a declaration on the face of the entry, or its electronic equivalent, provided that the passenger or person filing the informal entry is the owner of the articles and that they are for his personal use and not for sale or other commercial use and provided the Customs officer concerned is satisfied that the articles are of the requisite age. (b) Antiques of the age prescribed by subheading 9706.00.00, HTSUS, or admitted under the provisions of paragraph (e) of this section, shall be admitted free of duty though repaired or renovated. If, however, an antique has been repaired with a substantial amount of additional material, without changing the original form or shape, the original and added portions shall be appraised and reported as separate entities and the basis for such report shall be plainly indicated on the invoice by the appraiser. In such cases duty shall be assessed on the portion added. If the repairs consist of an addition to an article of a feature which changes it substantially from the article originally produced, or if the antique portion has otherwise been so changed as to lose its identity as the article which was in existence prior to the time prescribed in subheading 9706.00.00, HTSUS, the entire article shall be excluded from free entry under subheading 9706.00.00, HTSUS. (c) Except for furniture admitted under the provisions of paragraph (e) of this section, furniture claimed to be free of duty under subheading 9706.00.00, Harmonized Tariff Schedule of the United States (HTSUS) may be entered for consumption at any port of entry within the customs territory of the United States. Furniture as used in this section of the regulations is defined as ‘movable articles of convenience or decoration for use in furnishing a house, apartment, place of business or accommodation’. This definition embraces most articles claimed to be free of duty as antiques. (d) A claim for the free entry of an article under subheading 9706.00.00, HTSUS on the basis of antiquity may be made on the entry, or filed after entry at any time prior to liquidation of the entry, provided the article has not been released from Customs custody or it has been found upon examination before such release to be described in subheading 9706.00.00, HTSUS. (e) Antique articles otherwise prohibited entry by the Endangered Species Act of 1973 (16 U.S.C. 1521, et seq. (1) The article is composed in whole or in part of any endangered or threatened species listed in 50 CFR 17.11 or 17.12, (2) The article is not less than 100 years of age, (3) The article has not been repaired or modified with any part of any such endangered or threatened species, on or after December 28, 1973, (4) The article is entered at a port designated in § 12.26 of this chapter, (5) A Declaration for Importation or Exportation of Fish or Wildlife (USFWS Form 3-177, or its electronic equivalent) is filed at the time of entry with the port director who will forward the form to the U.S. Fish and Wildlife Service, and (6) The importer meets the requirements of paragraph (a) of this section. (f) The additional duty imposed by additional U.S. Note 2, Chapter 97, HTSUS, shall apply to any article which is imported for sale and claimed, either at the time of entry or at a later date, to be free of duty under subheading 9706.00.00, HTSUS, if such article is later found to be unauthentic in respect of the antiquity claimed as a basis for such free entry, unless the claim under subheading 9706.00.00, HTSUS, is withdrawn in writing before the examination of the article for the purpose of appraisement or classification has begun. (g) The additional duty provided for in additional U.S. Note 2, Chapter 97, HTSUS shall not be assessed if the importer established by evidence satisfactory to the Center director that the article was not imported for sale. In the case of any article imported in a passenger's baggage or entered under an informal entry, the Customs officer concerned may accept the statement of the owner that the article was not imported for sale if he is satisfied of the truth of such statement. [28 FR 14663, Dec. 31, 1963] Editorial Note: For Federal Register www.govinfo.gov. § 10.54 Gobelin and other hand-woven tapestries. Pursuant to subheading 5805.00.10, Harmonized Tariff Schedule of the United States, Gobelin tapestries produced in the Manufacture Nationale des Gobelins factories at Paris and Beauvais under the direction and control of the French Government, and other hand-woven tapestries, shall be accorded free entry if of a kind fit only for use as wall hangings, and valued over $215 per square meter. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988] Vegetable Oils § 10.56 Vegetable oils, denaturing; release. (a) Olive, palm-kernel, rapeseed, sunflower, and sesame oil shall be classifiable under subheadings 1509.10.20, 1509.10.40, 1509.90.20, 1509.90.40, 1510.00.20, 1512.19.20, 1513.29.00, 1514.90.10, 1514.90.50, 1515.50.00, Harmonized Tariff Schedule of the United States, if denatured abroad or under Customs supervision after importation but before release from Customs custody, at the request and expense of the importer, by a formula prescribed by Headquarters, U.S. Customs Service, or if by their method of production abroad they are rendered unfit for use as food or for any but mechanical or manufacturing purposes. (b) Each cask or package of oil claimed to have been before importation denatured or otherwise rendered unfit for use as food or for any but mechanical or manufacturing purposes shall be sampled and tested by an appraising officer. (c) Formulas prescribed by Headquarters, U.S. Customs Service, except proprietary mixtures, will be circulated to all Customs officers and will appear as abstracts of United States Customs Service decisions published in the weekly Customs Bulletins. Proprietary mixtures approved by the Commissioner of Customs will not be published but appropriate notice of their approval will be given to all Customs officers. (d) The Headquarters, U.S. Customs Service, will from time to time prescribe additional formulas, and will consider any formula for special denaturing that may be submitted. (e) The Center director may, if he deems it advisable, require an importer requesting permission to use any authorized denaturant to submit to the appraiser an adequate sample of such denaturant, in order that the appraiser may report to the Center director whether or not such denaturant is suitable for rendering the oil unfit for use as food or for any but mechanical or manufacturing purposes. (f) No such oil shall be released free of duty until the appraiser shall have made a special report that it has been properly denatured. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 66-182, 31 FR 11416, Aug. 30, 1966; T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988] Potatoes, Corn, or Maize § 10.57 Certified seed potatoes, and seed corn or maize. Claim for classification as seed potatoes under subheading 0701.10.00, as seed corn (maize) under subheading 1005.10., HTSUS, shall be made at the time of entry. Such classification shall be allowed only if the articles are white or Irish potatoes, or maize or corn, imported in containers and if, at the time of importation, there is firmly affixed to each container an official tag supplied by the government of the country in which the contents were grown, or an agency of such government. The tag shall bear a certificate to the effect that the specified contents of the container were grown, and have been approved, especially for use as seed. The tag shall also bear a number or other symbol identifying the potatoes or corn in the container with an inspection record of the foreign government or its agency on the basis of which the certificate was issued. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51250, Dec. 21, 1988] Bolting Cloths § 10.58 Bolting cloths; marking. (a) As a prerequisite to the free entry of bolting cloth for milling purposes under subheading 5911.20.20, Harmonized Tariff Schedule of the United States, the cloth shall be indelibly marked from selvage to selvage at intervals of not more then 10.16 centimeters with “bolting cloth expressly for milling purposes” in block letters 7.62 centimeters in height. Bolting cloths composed of silk imported expressly for milling purposes shall be considered only such cloths as are suitable for and are used in the act or process of grading, screening, bolting, separating, classifying, or sifting dry materials, or dry materials mixed with water, if the water is merely a carrying medium. (b) Bolting cloths not marked in the manner above indicated at the time of importation may be so marked by the importers in public stores under the supervision of customs officers. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988] Withdrawal of Supplies and Equipment for Vessels § 10.59 Exemption from customs duties and internal-revenue tax. (a) A vessel shall not be considered to be actually engaged in the foreign trade, or in trade between the Atlantic and Pacific ports of the United States, or between the United States and its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States, as the case may be, for the purpose of withdrawing supplies free of duty and internal-revenue tax pursuant to section 309(a), Tariff Act of 1930, as amended, unless it is— (1) Operating on a regular schedule in a class of trade which entitles it to the privilege; (2) Actually transporting passengers or merchandise to or from a foreign port, a port on the opposite coast of the United States, or between a port in a possession of the United States and a port in the United States or in another of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States; (3) Departing in ballast (without cargo or passengers) from one port for another, domestic or foreign, for the purpose of lading passengers or cargo at the port of destination for carriage in a class of trade specified in section 309(a), Tariff Act of 1930, as amended, for which class of trade the vessel is suitable and substantially ready for service with necessary fittings, outfit, and equipment already installed on its departure in ballast, and from which it is not diverted prior to carriage of passengers or cargo in such trade. A written declaration of the owner or agent of the vessel may be required in connection with the withdrawal, certifying to the vessel's suitableness and substantial readiness with necessary fittings, outfit, and equipment already installed on its departure in ballast for service in a class of trade specified in section 309 and agreeing to notify the port director if it is laid up or diverted from such class of trade prior to the carriage of cargo or passengers in such trade. (b) A withdrawal of articles may not be made under section 309, Tariff Act of 1930, as amended, for use on a trial or test trip of a vessel preparatory to its actually engaging in trades. (c) The classes of articles which may be withdrawn as provided for by section 309, Tariff Act of 1930, as amended, include the containers in which the articles are withdrawn and laden even though for tariff purposes the containers are classifiable separately from their contents, except unusual containers within the purview of General Rule of Interpretation 5, Harmonized Tariff Schedule of the United States (HTSUS). (d) For the purpose of allowing the privileges of section 309, Tariff Act of 1930, as amended, to aircraft as provided for therein, an aircraft shall be deemed to be a vessel within the meaning of each provision of this section and of §§ 10.60 through 10.64 which may be applied to aircraft. (e) A documented vessel with a fisheries license endorsement and foreign fishing vessels of 5 net tons or over may be allowed to withdraw distilled spirits (including alcohol), wines, and beer conditionally free under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309), if the port director is satisfied from the quantity requested, in the light of (1) whether the vessel is employed in substantially continuous fishing activities, and (2) the vessel's complement, that none of the withdrawn articles is intended to be removed from the vessel in, or otherwise returned to, the United States without the payment of duty or tax. Such withdrawal shall be permitted only after the approval by the port director of a special written application, in triplicate, on Customs Form 5125, of the withdrawer, supported by a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter executed by the withdrawer. Such application shall be filed with Customs Form 7501, or its electronic equivalent, or 7512, as the case may be. The original and the triplicate copy of the application, after approval, shall be stamped with the withdrawal number and date thereof and shall be returned to the withdrawer for use as prescribed below. Approval of each such application shall be subject to the condition that the original and the triplicate copy shall be presented thereafter by the withdrawer or the vessel's master to the port director within 24 hours (excluding Saturday, Sunday, and holidays) after each subsequent arrival of the vessel at a Customs port or station and that an accounting shall be made at the time of such presentation of the disposition of the articles until the port director is satisfied that all of them have been consumed on board, or landed under Custom's supervision, and takes up the original application. (The withdrawer shall retain the triplicate copy as evidence of consumption on board or landing under Customs supervision.) The approval shall be subject to the further conditions that any such withdrawn article remaining on board while the vessel is in port shall be safeguarded in the manner and to such extent as the district director for the port or place of arrival shall deem necessary and that failure to comply with the conditions upon which a conditionally free withdrawal is approved shall subject the total quantity of withdrawn articles to the assessment and collection of an amount equal to the duties and taxes that would have been assessed on the entire quantity of supplies withdrawn had such supplies been regularly entered, or withdrawn, for consumption. Exemption from internal-revenue tax on distilled spirits, alcohol, wines, and beer removed from any internal-revenue bonded warehouse, industrial alcohol premises, bonded wine cellar, or brewery; and drawback on taxpaid distilled spirits or wines removed from an export storage room, or on taxpaid beer removed from a brewery (or place of storage elsewhere), for use as supplies on vessels under section 309, Tariff Act of 1930, as amended, are governed by regulations of the Internal Revenue Service. (f) Pursuant to section 309(d) of the Tariff Act of 1930, as amended, the Department of Commerce has found and advised the Secretary of the Treasury of the foreign countries which allow privileges to aircraft registered in the United States substantially reciprocal to those described in sections 309 and 317 of the Tariff Act of 1930, as amended. Advices also have been received of changes and limitations of privileges allowed. In accordance with these advices, Treasury decisions are issued extending to the aircraft of foreign countries free withdrawal privileges reciprocal to those found by the Secretary of Commerce to be extended by those countries to aircraft registered in the United States or making changes in such privileges on the basis of new findings. Listed below by countries are the Treasury decisions issued pursuant to such findings which are currently in effect: Country Treasury Decision(s) Exceptions if any, as noted— Abu Dhabi 95-45 Argentina 54925 (1) Applicable only as to aircraft equipment, spare parts, and supplies. Australia 54747 (1) Not applicable to ground equipment. Austria 80-68 Bahamas 52798 (3) Bahrain 95-45 Belgium 52846 (2) Benin 71-215,93- Bermuda 49944 (4) Brazil 53281 (2) Canada 69-149 Not applicable to ground equipment during period May 1 to September 16, 1969, inclusive. Chile 66-128 (2) China* 82-91 Colombia 70-107 (1) Costa Rica 53658 (1) Cuba 81-198 Applicable only as to aircraft supplies. Czechoslovakia 70-107 (1) Denmark 51966 (3) Dominican Republic 54522 (1) Ecuador 52510 (4) Egypt 74-3 El Salvador 54675 (1) Finland 69-120 (2) France 67-96 (1) Not applicable to tobacco products under section 317 of the tariff act. Not applicable to ground equipment. Federal Republic of Germany 69-150 Not applicable to ground equipment. Greece 54847 (1) Guyana 78-28 Honduras 71-154 Iceland 67-265 (1) India 55155 (1) Indonesia 90-61 Applicable only as to aviation fuels and lubricants. Iran 75-254 Ireland 55291 (1) Israel 52831 (3) Italy 69-223 Not applicable to ground equipment. Ivory Coast 71-215 Jamaica 70-250 Japan 53550 (1), 88-45 Not applicable to ground support equipment as of August 1, 1986 Jordan 74-102 Kenya 71-102 Applicable only as to aircraft fuels and lubricants. Lebanon 53902 (1) Luxembourg 89-77 Applicable only as to aviation fuels. Mexico 54506 (5) Morocco 75-254 Netherlands 52494 (2) Netherlands Antilles 71-211 New Zealand 73-52 Not applicable to ground equipment. Nicaragua 54640 (1) Norway 51966 (3) Oman 95-45 Pakistan 55416 (1) Panama 55453 (1) Peru 52911 (2) Poland 72-153 Portugal 68-107 (1) Not applicable to ground equipment. Qatar 95-45 Republic of Korea 71-140 Republic of the Philippines 71-197 Romania 75-35 Saudi Arabia 73-307, 92-68 Senegal 71-215 Singapore 93-25 South Africa 69-162 Not applicable to ground equipment. Spain 54522 (2) Sweden 51966 (3) Switzerland 56047 Taiwan 70-107 (1), 82-91 Not applicable to ground equipment. Tanzania 71-102 Applicable only as to aircraft fuels and lubricants. Thailand 71-138, 89-6 Trinidad and Tobago 56441 (1) Turkey 89-7 Uganda 71-102 Applicable only as to aircraft fuels and lubricants. Union of Soviet Socialist Republics 67-123 (1) United Kingdom 69-176 Not applicable to ground equipment. Venezuela 55425 (1) Yugoslavia 71-138 Zambia 89-5 *See also Taiwan [28 FR 14663, Dec. 31, 1963] Editorial Note: For Federal Register www.govinfo.gov. § 10.60 Forms of withdrawals; bond. (a) Withdrawals from warehouse shall be made on CBP Form 7501. Each withdrawal must contain the statement prescribed for withdrawals in § 144.32 of this chapter and all of the statistical information as provided in § 141.61(e) of this chapter. Withdrawals from continuous CBP custody elsewhere than in a bonded warehouse must be made by filing an in-bond application pursuant to part 18 of this chapter, except as provided for by paragraph (h) of this section. When a withdrawal of supplies or other articles is made which may be used on a vessel while it is proceeding in ballast to another port as provided for by § 10.59(a)(3), a notation of this fact shall be made on the withdrawal and the name of the other port given if known. (b) If the withdrawal is made by other than the principal on the warehouse or rewarehouse entry, as the case may be, the assent of such principal shall be endorsed on the withdrawal, unless the principal has otherwise authorized such withdrawal in writing. (c) A bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter shall be taken when the withdrawal from warehouse is made by a person other than the principal on the warehouse or rewarehouse entry, as provided for in paragraph (b) of this section. (d) Except as otherwise provided in § 10.62b, relating to withdrawals from warehouse of aircraft turbine fuel to be used within 30 days of such withdrawal as supplies on aircraft under section 309, Tariff Act of 1930, as amended, when the supplies are to be laden at a port other than the port of withdrawal from warehouse, they shall be withdrawn for transportation in bond to the port of lading by filing an in-bond application pursuant to part 18 of this chapter. The procedure shall be the same as that prescribed in 144.37 of this chapter. (e) No bond shall be required in the case of war vessels. (f) Unless transfer is permitted under the provisions of paragraph (h) of this section, when articles are withdrawn from continuous Customs custody elsewhere than in a bonded warehouse for lading at the port of withdrawal, the procedure provided for in § 18.25 of this chapter shall be followed. Unless transfer is permitted under the provisions of paragraph (h) of this section, when articles are withdrawn from continuous Customs custody elsewhere than in a bonded warehouse for lading at another port, the procedure set forth in § 18.26 of this chapter shall be followed. There shall be such examination of the articles as may be necessary to satisfy the port director that they are subject to the privileges of section 309, Tariff Act of 1930, as amended, and that the value and quantity declared for them are correct. (g) A withdrawal under § 10.59(e) shall be supported by a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter. (h) If a request is made for permission to transfer supplies or stores from one vessel to another which would be entitled to withdraw them free of duty and tax under section 309 or 317, Tariff Act of 1930, as amended, the port director in his discretion may permit the articles to be so transferred under Customs supervision under a permit on Customs Form 3171 in lieu of a formal withdrawal under the pertinent statute. In such a case, the pertinent statute shall be indicated by an endorsement made on the permit by the port director. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17445, July 2, 1973; T.D. 73-312, 38 FR 30882, Nov. 8, 1973; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 95-81, 60 FR 52295, Oct. 6, 1995; T.D. 96-18, 61 FR 6777, Feb. 22, 1996; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015; CBP Dec. 17-13, 82 FR 45393, Sept. 28, 2017] § 10.61 Withdrawal permit. Upon the filing of the withdrawal and the execution of the bond, when required, the port director shall issue a permit on CBP Form 7501 or in-bond application. [CBP Dec. 17-13, 82 FR 45394, Sept. 28, 2017] § 10.62 Bunker fuel oil. (a) Withdrawal under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309). (1) Type of oil withdrawn. (2) Number or other identification of sales order therefor. (3) Name of bonded carrier, date it received oil. (4) Receipt signed by master or other person in charge of delivering conveyance identified by number, or name, and if Customs bonded lighterman or cartman, by the carrier's license number. (5) Name and location of vessel obtaining oil. (6) Quantity and identification of each type of oil received with date, and signature and title of receiving officer. If all the oil is laden on the receiving vessel at the port of withdrawal via pipeline from the bonded storage tank, paragraphs (a) (3) and (4) of this section shall be deemed to be inapplicable. (b) If a blanket free withdrawal of bunker fuel oil is filed, to comply with Bureau of the Census requirements the withdrawal on Customs Form 7501, or its electronic equivalent, shall be endorsed “Estimated Withdrawals” and limited to the aggregate quantity and value of fuel oil which it is estimated will be physically removed from Customs bond during the calendar month in which the withdrawal is filed for lading on vessels entitled to duty-free vessel supplies under section 309 of the Tariff Act of 1930, as amended. (c)(1) As an incident of the delivery of fuel oils classifiable at different rates of duty to a vessel or vessels under section 309 of the tariff act, the port director may, when necessary to enable a supplier to meet fuel specifications, permit the blending of the oils in the delivering conveyance or in other suitable facilities after withdrawal from the bonded tanks, upon the condition that, to the extent of the amount of oil withdrawn classifiable at the higher rate, duty at the higher rate will be paid on any portion of the blended fuel oil not delivered within a reasonable time to a qualified vessel. The withdrawer shall be required to file a withdrawal for consumption for the excess quantity withdrawn. For example, if the quantity withdrawn consists of 1,500 barrels of bunker C fuel oil classifiable at the rate of one-eighth cent per gallon and 500 barrels of diesel oil classifiable at the rate of one-fourth cent per gallon but only 1,400 barrels of the blended oil are actually laden as fuel supplies on qualified vessels, withdrawals for consumption are required for 500 barrels of diesel oil at the higher rate and for 100 barrels of bunker C fuel oil at the lower rate. (2) Delivering transferer receipt. (d) Fuel oil withdrawn as vessel supplies at one port may be laden at another port on a vessel or vessels entitled to the free withdrawal privileges of section 309 of the tariff act, under procedures prescribed in this section, provided the movement to the receiving vessel or vessels is under the bond of a qualified carrier as described in § 18.1(a) of this chapter. In such cases, the provisions of § 10.60(d) of this chapter shall be deemed inapplicable. (e) If a vessel not entitled to duty-free withdrawal of supplies from Customs bonded warehouses under section 309 of the Tariff Act of 1930, as amended, should be supplied with fuel oil from a Customs bonded tank described in paragraph (a) of this section because of an emergency, a duty paid withdrawal therefor shall be filed on the first day that the customhouse is open for the general transaction of business after the day on which the oil is laden on the using vessel. If there should be willful or repeated instances of late filing of a duty-paid withdrawal in such cases, the port director shall require a duty-paid withdrawal to be filed prior to the removal of fuel oil from the bonded tank. (f) When the procedures prescribed in this section are followed, representatives of the port director will from time to time verify various withdrawals against all pertinent records, including financial records, of the withdrawers, deliverers, and receivers of the oil. The withdrawer shall maintain all pertinent records relating to the withdrawal, delivery, or receipt of the fuel oil for 5 years from the date of liquidation of the related fuel oil entry. [T.D. 69-99, 34 FR 6520, Apr. 16, 1969, as amended by T.D. 79-159, 44 FR 31967, June 4, 1979; T.D. 82-204, 47 FR 49367, Nov. 1, 1982; T.D. 95-81, 60 FR 52295, Oct. 6, 1995; T.D. 96-18, 61 FR 6777, Feb. 22, 1996; T.D. 96-51, 61 FR 31395, June 20, 1996; T.D. 99-33, 64 FR 16347, Apr. 5, 1999; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.62a Blanket withdrawals for certain merchandise. (a) Generally. (b) Partial release. [T.D. 82-204, 47 FR 49367, Nov. 1, 1982, as amended by T.D. 95-81, 60 FR 52295, Oct. 6, 1995; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.62b Aircraft turbine fuel. (a) General. (1) Exported within that 24-hour period; (2) Used under section 309 within that 24-hour period; or (3) Entered or withdrawn for consumption, with duty deposited, as required under the applicable regulations (see part 144 of this chapter). (b) Duty-free withdrawal from warehouse of aircraft turbine fuel under section 557(a), Tariff Act of 1930, as amended (19 U.S.C. 1557(a)). (c) Establishment of use of fuel by qualifying aircraft. (i) Records prepared in the normal course of business effecting the transfer to identified ( e.g., (ii) A certification (documentary or electronic) that: (A) All of the fuel withdrawn was intended for use on aircraft entitled to the privileges provided for in section 309; (B) Within 30 days of the date of withdrawal from warehouse, an amount of fuel equal to or exceeding the quantity of the fuel withdrawn which is not entered and on which duties are not paid was transferred as supplies to aircraft entitled to the privileges provided for in section 309; (C) All of the aircraft into which fuel is loaded hereunder were used in a trade provided for in section 309; and (D) The person making the certification possesses evidence (documentary or electronic) available for Customs inspection at a named place which supports each of the above statements. (2) Upon request by Customs, the person who submits the certification provided for in paragraph (c)(1) of this section shall promptly provide the evidence required to support the claim for treatment under this section (including the records described in § 10.62b(c)(1)(i)) and §§ 10.62 and 19.6(d) and each of the statements in the certification. (d) Time for establishment of use of fuel by qualifying aircraft. (e) Treatment of turbine fuel withdrawn but not used on qualifying aircraft within 30 days. (f) Liquidated damages. (1) The failure to timely file the withdrawal for consumption and payment of duty, with interest, on the quantity of fuel so withdrawn in excess of the quantity of fuel established to have been used on qualifying aircraft within 30 days of withdrawal, as provided for in paragraph (e) of this section; (2) The failure to timely file the evidence or certification establishing such use of the fuel which is not entered and on which duties are not paid, as provided for in paragraph (c) of this section; or (3) The failure to promptly provide the evidence required to support the claim for treatment under paragraph (b) of this section, upon request by Customs, as provided for in paragraph (c)(2) of this section. (g) Blanket withdrawals. (1) Application by the withdrawer for a blanket permit to withdraw shall be on the warehouse entry, or on the warehouse entry/entry summary when used as an entry, annotated with the words “Some or all of the merchandise will be withdrawn under blanket permit per §§ 10.62, 10.62b, and 19.6(d).”; (2) Turbine fuel withdrawn under a blanket permit as authorized in this paragraph may be delivered at a port other than the port of withdrawal; (3) Customs acceptance of a properly completed application for a blanket permit to withdraw, on the warehouse entry or warehouse entry/entry summary, will constitute approval of the blanket permit to withdraw; (4) A copy of the approved blanket permit to withdraw will be delivered to the warehouse proprietor, whereupon fuel may be withdrawn under the terms of the blanket permit; (5) The withdrawal document to be placed in the proprietor's permit file folder (see § 19.6(d)(2)) will be a commercially acceptable document of receipt (such as a “withdrawal ticket”) issued by the warehouse proprietor, identified with a unique alpha-numeric code and containing the following information: (i) Identity of withdrawer; (ii) Identity of warehouse and tank from which fuel is withdrawn; (iii) Date of withdrawal; (iv) Type of merchandise withdrawn; and (v) Quantity of merchandise withdrawn. (6) The date of withdrawal, for purposes of calculating the 30-day period in which fuel must be used on qualifying aircraft under this section, shall be the date on which physical removal of the fuel from the warehouse commences; (7) The blanket permit summary prepared by the proprietor as provided for in § 19.6(d)(4) shall be prepared when all of the fuel covered by the blanket permit has been withdrawn and shall account for all merchandise withdrawn under the blanket permit, as required by § 19.6(d)(4), by stating, in summary form, the unique alpha-numeric codes and information required in paragraph (g)(5) of this section, as well as the identity of the warehouse entry to which the withdrawal is attributed; (8) The certification on the blanket permit summary (see § 19.6(d)(4)) shall be that the merchandise listed thereunder was withdrawn in compliance with §§ 10.62, 10.62b, and 19.6(d); and (9) The person withdrawing aircraft turbine fuel under these blanket procedures shall submit the records or certification provided for in § 10.62b(c) by the 40th day after all of the fuel covered by the blanket permit has been withdrawn (see § 10.62b(d)). At the discretion of the port director for the port where blanket withdrawal was approved, submission of the records and evidence required to establish use of the fuel on qualifying aircraft may be required to be submitted electronically, in a format compatible with Customs electronic record-keeping systems. (h) Recordkeeping. [T.D. 96-18, 61 FR 6778, Feb. 22, 1996, as amended by T.D. 99-33, 64 FR 16347, Apr. 5, 1999] § 10.63 Landing of supplies and stores from receiving vessel in the United States. Supplies or stores laden on a vessel duty and tax free under section 309, Tariff Act of 1930, as amended, may be landed under Customs supervision under proper permit, the same as if they had been laden in a foreign country. See § 4.39 of this chapter. Except when transfer to another vessel entitled to the free withdrawal privilege is permitted under the original withdrawal under section 309, Tariff Act of 1930, as amended, the landed articles shall be treated as an importation from a foreign country. [28 FR 14663, Dec. 31, 12963, as amended by T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997] § 10.64 Crediting or cancellation of bonds. (a) Except as stated below, a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter may be credited or canceled in respect of such articles upon the vessel's departure from the port of lading in a class of trade or business entitling the articles to exemption from duty and tax under the statute. The withdrawer shall cause the merchandise to be delivered to the lading vessel, and shall provide such evidence of lading as required by the port director within 30 days after lading, except as provided in this section. If the vessel is not operated by the United States and proceeds in ballast from the port where the articles are laden to another port to lade passengers or cargo for carriage in a class of trade specified in section 309, Tariff Act of 1930, as amended, the bond may be credited or canceled upon the filing with the director of the port of withdrawal within 3 months after the date of withdrawal of a proper declaration as prescribed below. The declaration shall be executed by one of the following who has knowledge of the facts: (1) The operations manager or port captain for the vessel on which the articles are laden but not a representative of the supplier. (2) The master or other officer of the vessel on which the articles are laden. The declaration shall be in substantially the following form: I, (Operations manager, port captain, master, or other officer) of the vessel ____________ declare that I have knowledge of the facts set forth herein, and that upon the lading of the articles described below covered by withdrawal No. ________, filed at ________________(Name of port), the vessel then proceeded in ballast to ________________(Name of port) to lade cargo or passengers; that the vessel was suitable for service in the class of trade checked below with fittings, outfit, and equipment for such trade already installed when it so departed in ballast; and that upon arrival it proceeded to engage in the carriage of cargo or passengers in such trade, except as stated below: (If no exception, note “None”) 1. Foreign Trade. 2. Trade between Atlantic and Pacific ports of the United States, when such trade is not prohibited by coastwise laws. 3. Trade between the United States and any of its possessions, when such trade is not prohibited by coastwise laws. 4. Trade between Alaska or Hawaii and any other part of the United States, when such trade is not prohibited by coastwise laws. Description of articles: (Name and title) (b) A declaration as to the intended business or trade of a vessel may, in the discretion of the port director, be accepted in lieu of a declaration prescribed in paragraph (a) of this section when the amount of duty or tax, or both, involved in a single lading is less than $100. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, Oct. 19, 1984] § 10.64a [Reserved] § 10.65 Cigars and cigarettes. (a) Imported cigars and cigarettes in bonded warehouse or otherwise in Customs custody, and such articles manufactured with the use of imported materials in a bonded manufacturing warehouse of class 6, may be withdrawn under section 317, Tariff Act of 1930, as amended, for consumption beginning beyond the 3-mile limit or international boundary, as the case may be, (1) on vessels actually engaged in the foreign, intercoastal, or noncontiguous territory trade within the purview of § 10.59(a); (2) on vessels departing from the port where the withdrawal is made directly for a foreign port, a port on the opposite coast, or a port in one of the possessions of the United States; or (3) on vessels of war or other governmental activity. (b) The privilege shall not be granted to vessels stationed in American waters for an indefinite period without sailing schedules, nor shall it be granted to aircraft of foreign registry of a country for which there is not in effect a finding and advice by the Department of Commerce under section 309(d), Tariff Act of 1930, as amended, that such country allows privileges to aircraft registered in the United States substantially reciprocal to those described in section 317, Tariff Act of 1930, as amended. See section 10.59(f). (c) With the following additions and exceptions, the same procedure shall be followed as in the case of withdrawals under section 309(a), Tariff Act of 1930, as amended. (1) No bond shall be required in the case of vessels operated by the United States Government. (2) When a shipping case containing cigars and cigarettes is made up of a number of units, each in a separate package, such units may be withdrawn separately, provided each unit is marked and numbered for identification and contains not less than 250 cigars or 1,000 cigarettes. In the case of imported cigars and cigarettes so packed, only one unit from each shipping case shall be opened for examination, unless the port director shall deem it necessary for the protection of the revenue to examine a greater quantity. Imported tobacco products on which the duty or internal-revenue tax has been paid may not be withdrawn under section 317, Tariff Act of 1930, as amended, with a drawback of such duty or internal-revenue tax. (3) When all the units in such shipping case are not to be withdrawn at the same time or for use on the same vessel, a blanket withdrawal may be filed for the entire case in lieu of a separate withdrawal for each unit. In such event, the withdrawal shall be retained by the warehouse proprietor until delivery receipts are obtained for the entire quantity covered by the withdrawal, provided the total period of time prior to delivery to the using vessel or aircraft does not exceed 5 years. A bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, when required, shall be filed at the time of or prior to the removal of any of the merchandise from the warehouse for delivery to the vessel on which it is to be used. (4) Merchandise for which blanket withdrawals are filed shall be stored in a separate room or enclosure in a bonded warehouse under separate locks, and the merchandise clearly marked to show that it has been withdrawn. If, at the time of any such inventory, any merchandise is missing and not properly accounted for, duties shall be paid thereon before any further withdrawals are permitted. (5) The declaration of use, when required, shall include a statement that consumption of the articles covered by the withdrawal did not begin until the withdrawing vessel or aircraft had proceeded beyond the 3 mile limit or the international boundary. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 67-193, 32 FR 11764, Aug. 16, 1967; T.D. 70-73, 35 FR 5400, Apr. 1, 1970; T.D. 82-204, 47 FR 49368, Nov. 1, 1982; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 89-1, 53 FR 51250, Dec. 21, 1988] Articles Exported for Exhibition, Etc. § 10.66 Articles exported for temporary exhibition and returned; horses exported for horse racing and returned; procedure on entry. (a) In connection with the entry of articles, including livestock or other animals, exported for temporary exhibition and returned and claimed to be exempt from duty under subheading 9801.00.50 or 9801.00.60, Harmonized Tariff Schedule of the United States (HTSUS), there shall be filed: (1) A certificate of exportation on Customs Form 3311, or its electronic equivalent; (2) A declaration of the importer on Customs Form 4455, or its electronic equivalent, for articles of either domestic or foreign origin; and (3) In the case of animals of foreign origin taken abroad for exhibition in connection with a circus or menagerie, a copy of an inventory of these animals filed prior to their leaving the country with the director of the port of their departure. (b) If it is shown to be impracticable to produce the certificate of exportation required under paragraph (a)(1) of this section, the port director may accept other satisfactory evidence of exportation, or may take a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter to secure the production of such certificate or other evidence. (c) Articles claimed to be exempt from duty under subheading 9801.00.50 or 9801.00.60, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202), may be returned free of duty without formal entry and without regard to the requirements of paragraph (a) or (b) of this section if: (1) Prior to the exportation of such articles, an application on Customs Form 4455, or its electronic equivalent, (accompanied by an appropriate inventory, when required by law or by the port director) is filed with a declaration thereon that: (i) Any right to drawback of Customs duties with respect to that shipment was waived; (ii) Any internal revenue tax due has been paid and no refund thereof will be sought; and (iii) The merchandise was identified, registered, and exported in accordance with the regulations set forth in §§ 10.8(e), (g), (h), and (i), governing the exportation of articles sent abroad for repairs, and (2) Upon return, a duplicate Customs Form 4455, or its electronic equivalent, (with accompanying inventory where one was required) is filed. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 74-242, 39 FR 33794, Sept. 20, 1974; T.D. 75-235, 40 FR 44319, Sept. 26, 1975; T.D. 78-153, 43 FR 23709, June 1, 1978; T.D. 82-224, 47 FR 53727, Nov. 29, 1982; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 94-1, 58 FR 69470, Dec. 30, 1993; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.67 Articles exported for scientific or educational purposes and returned; procedure on entry. (a) In connection with each entry of articles exported for scientific or educational purposes and returned under subheading 9801.00.40, Harmonized Tariff Schedule of the United States (HTSUS), the following shall be required, irrespective of the value of the shipment: (1) A certificate of exportation on Customs Form 3311, or its electronic equivalent; (2) A declaration, or its electronic equivalent, by the foreign shipper in the same form as that prescribed in § 10.66(a)(2) but stating that such articles were sent from the United States solely for temporary scientific or educational use and describing the specific use to which they were put while abroad. (3) A declaration of the ultimate consignee, or its electronic equivalent, in substantially the following form: Port of ________________, Port Director's Office, __________________, 19____. I, ____________________, declare that the several articles described in the annexed entry are, to the best of my knowledge and belief, the identical articles exported from the United States on the ____________ day of ____________, 19____, by __________________ (Actual shipper) address ________________, for the account of ________________, address ________________that they are returned to ________________, address ________________, for the account of ________________, address ______________ that the said articles were exported solely for temporary scientific or educational purposes and for no other use abroad than for exhibition, examination, or experimentation; that they are being returned without having been changed in condition in any manner, except by reason of their bona fide use as follows: (Describe change in condition) (Ultimate consignee) (b) If it is shown to be impracticable to produce the certificate of exportation required by paragraph (a)(1) of this section, the port director may accept other satisfactory evidence of exportation. The port director may take a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter to secure the subsequent production of any of the evidence or documents required by paragraph (a) of this section which are not available at the time of entry. (c) If, prior to the exportation of articles claimed to be exempt from duty under subheading 9801.00.40, Harmonized Tariff Schedule of the United States (HTSUS), an application on Customs Form 4455, or its electronic equivalent, (accompanied by an appropriate inventory when, in the discretion of the port director, such inventory is deemed necessary) was filed, such articles may be returned for the account of the exporter free of duty without formal entry, without regard to the requirements of paragraphs (a) and (b) of this section, upon the filing of the duplicate Customs Form 4455, or its electronic equivalent, (with accompanying inventory, if one was required), and a declaration of the ultimate consignee in substantially the form set forth in paragraph (a)(3) of this section. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 74-242, 39 FR 33794, Sept. 20, 1974; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 94-1, 58 FR 69470, Dec. 30, 1993; T.D. 97-82, 62 FR 51769, Oct. 3, 1997; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Theatrical Effects, Motion-Picture Films, Commercial Travelers' Samples, and Tools of Trade § 10.68 Procedure. (a) Theatrical scenery, properties, and effects, motion-picture films (including motion-picture films taken aboard a vessel for exhibition only during an outward voyage and returned for the same purpose during an inward voyage on the same or another vessel), commercial travelers' samples, and professional books, implements, instruments, and tools of trade, occupation, or employment (see § 148.53 of this chapter), of domestic or foreign origin, taken abroad may be returned without formal entry and without payment of duty if an exportation voucher from a carnet, when applicable, or an application on Customs Form 4455, or its electronic equivalent, was filed, and the merchandise was identified as set forth in § 10.8, before exportation of the articles. Articles exported under cover of an A.T.A. carnet (where the carnet serves as the control document) may, in accordance with this paragraph, be returned without entry or the payment of duty. If Customs Form 4455, or its electronic equivalent, is utilized, commercial travelers' samples, professional books, implements, instruments, and tools of trade, occupation, or employment may be returned with either an informal entry or a declaration on Customs Form 3299, or its electronic equivalent; theatrical scenery, properties, and effects and motion-picture films may be returned only with an informal entry. When articles other than those exported by mail or parcel post are examined and registered at one port and exported through another port, the port director may require proof of exportation in those cases where the carnet or Customs Form 4455, or its electronic equivalent, does not reflect that these articles were exported under Customs supervision. In the case of commercial travelers' samples taken abroad for temporary use, except where exportation involves certification of a carnet, port directors may waive examination of the samples at the time of exportation. When motion-picture films are to be taken aboard a vessel for exhibition only during an outward voyage and are to be returned for the same purpose during an inward voyage on the same or another vessel, port directors may waive examination and supervision at the time of exportation. When theatrical scenery, properties, and effects are taken abroad in sealed carload lots by rail for temporary use, the cars must be sealed by U.S. Customs officers for entry at any Canadian or Mexican port where U.S. Customs officers are stationed. Application and examination before the time of exportation is waived if a Customs Form 4455, or its electronic equivalent, is filed with the U.S. Customs officer in the appropriate Canadian or Mexican port, and that officer examines the articles before they are released from foreign customs custody by the foreign customs officer. (b) When any such articles are to be returned to the United States from a contiguous foreign country in which a United States Customs officer is stationed, the articles may be presented to such officer with the duplicate copy of the application for examination and comparison with the descriptive list. Upon completion of such examination, the packages containing the articles shall be corded and sealed or forwarded in cars sealed by Customs officers and shall be manifested in the same manner as personal baggage. Articles so treated shall be released upon arrival in the United States and removal of the seals by Customs officers. (c) When commercial travelers' samples consisting of raw cotton are taken to and returned from Canada, the application on Customs Form 4455, or its electronic equivalent, shall be executed in triplicate, two copies thereof to be returned to the traveler for surrender to the Customs officer on the return of the samples from Canada. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9801, June 25, 1969; T.D. 75-41, 40 FR 6646, Feb. 13, 1975; T.D. 82-49, 47 FR 12160, Mar. 22, 1980; T.D. 82-116, 47 FR 27261, June 24, 1982; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.69 Samples to Great Britain and Ireland under reciprocal agreement. Descriptive lists, or their electronic equivalents, of samples taken to Great Britain and Ireland by commercial travelers of the United States under the joint declarations of December 3 and 8, 1910 (State Department treaty series 552), shall be required in triplicate, verified by the affidavit of the commercial traveler before a Customs officer, and shall show that the samples are for use as models or patterns for the purpose of obtaining orders and not for sale and that the lists contain a full description of the articles. One copy shall be retained and the others shall be delivered to the commercial traveler—one for the identification of the samples on their return to the United States and one for the use of the foreign customs authorities. The latter copy must have been attested by a consular officer of the country concerned in the United States. [28 FR 14663, Dec. 31, 1963, as amended by CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Animals and Birds Cross Reference: For regulations with respect to recognition of breeds and purebred animals, see 9 CFR part 151. § 10.70 Purebred animals for breeding purposes; certificate. (a) In connection with the entry of purebred animals for breeding purposes under subheading 0101.11.00, Harmonized Tariff Schedule of the United States (HTSUS), no claim for free entry shall be allowed in liquidation of the entry until the Center director has received from the Department of Agriculture a certificate, or its electronic equivalent, that the animal is purebred of a recognized breed and duly registered in a book of record recognized by the Secretary of Agriculture for that breed. Importers are required by regulation of the Department of Agriculture to make application for a certificate of pure breeding to the U.S. Department of Agriculture, Animal and Plant Health Inspection Service, Veterinary Services, on ANH Form 17-338 before the animal will be examined as required by 9 CFR 151.7. Application for the certificate must be executed by the owner agent, or importer and filed at a port of entry designated in the regulations of the Department of Agriculture for the importation of animals (9 CFR 92.3). However, applications for certificates for dogs (other than dogs for handling livestock regulated under 9 CFR 92.18) and cats may be filed either at a designated port of entry or at any other port where Customs entry is made. The regulations of the Department of Agriculture prescribing the requirements for the issuance of certificates of pure breeding provide that all animals imported under such regulations must be accompanied to the port at which examination is to be made by certificates of pedigree and transfer of ownership, or their electronic equivalents, in order that identification may be accomplished, and that, if such animals are moved from such port prior to the presentation of such certificates and transfers, or their electronic equivalents, such action shall constitute a waiver of any further claim to certification under such regulations. (b) In the cases of cats and dogs arriving at Canadian border ports, Customs officers and employees are hereby authorized and directed to make the examination required by such regulations of the Department of Agriculture. Customs officers and employees are also authorized and directed to make such examinations at the ports of New York and Boston, provided the dog or cat is brought into the United States by a passenger. At all airports, Customs officers shall make the examination of dogs and cats, whether or not accompanied by the owners, if there is no inspector of the Department of Agriculture stationed there or on duty at the time of arrival. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 68-154, 33 FR 8730, June 14, 1968; T.D. 78-99, 43 FR 13060, Mar. 29, 1978; T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.71 Purebred animals; bond for production of evidence; deposit of estimated duties; stipulation. (a) The animal may be released from Customs custody upon the furnishing by the importer of a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter for the production within 6 months of (1) a certificate of pure breeding, or its electronic equivalent, issued by the Department of Agriculture, and (2) the declaration required by § 10.70(a) submitted in letter form if such declaration was not filed at the time of entry. The release of the animal from customs custody requires the presentation of the pedigree certificate and evidence of transfer of ownership in accordance with the regulations of the Department of Agriculture mentioned in § 10.70(b). (b) Charges against the bond shall be canceled only upon the production of the required evidence or on payment of duties. (c) In cases where the pedigree certificate and evidence of transfer of ownership have been presented in accordance with the regulations of the Department of Agriculture, the importer, if he so elects, may, in lieu of giving a bond, deposit estimated duties and file a stipulation with CBP, either at the port of entry or electronically within 10 days after the date of entry to produce the declaration and certificate of pure breeding within 6 months from the date of entry, whereupon the liquidation of the entry shall be suspended. (See § 113.42 of this chapter.) (d) If the pedigree certificate and evidence of transfer of ownership were not presented in accordance with such regulations of the Department of Agriculture, a deposit of estimated duties, in addition to the regular entry bond, shall be required. (e) When a passenger arriving in the United States with one or more dogs or cats and with the required certificates of pedigree and transfers of ownership in his possession furnishes a properly executed declaration as required by § 10.70(a) along with an application to the Department of Agriculture on ANH Form 17-338 for a certificate of pure breeding, the entry of the animal(s) as duty-free under subheading 0106.00.50, Harmonized Tariff Schedule of the United States (HTSUS), may be made on the passenger's baggage declaration if the value of the animals does not exceed $500. In such case the entry shall be supported by a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter for the production within 6 months of a certificate of pure breeding. The bond shall be without surety or cash deposit unless the port director on the basis of information before him finds that a bond with surety or a cash deposit is necessary to protect the revenue. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 68-79, 33 FR 4461, Mar. 13, 1968; T.D. 68-154, 33 FR 8731, June 14, 1968; T.D. 74-227, 39 FR 32015, Sept. 4, 1974; T.D. 78-99 43 FR 13060, Mar. 29, 1978; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 87-75, 52 FR 26142, July 13, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] §§ 10.72-10.73 [Reserved] § 10.74 Animals straying across boundary for pasturage; offspring. When domestic animals for which free entry is to be claimed under subheading 9801.00.90, Harmonized Tariff Schedule of the United States, have strayed across the boundary line, they may be returned, together with their offspring, without entry if brought back within 30 days; otherwise entry shall be required. The owner of any such animal shall report its return to the nearest Customs office and hold it for such inspection and treatment as may be deemed necessary by a representative of the Animal and Plant Health Inspection Service of the Department of Agriculture. Any such arrival found not to have been so reported or held shall be subject to seizure and forfeiture pursuant to 18 U.S.C. 545. [T.D. 87-75, 52 FR 20067, May 29, 1987, as amended by T.D. 89-1, 53 FR 51250, Dec. 21, 1988] § 10.75 Wild animals and birds; zoological collections. When wild animals or birds are claimed to be free of duty under subheading 9810.00.70, Harmonized Tariff Schedule of the United States (HTSUS), (19 U.S.C. 1202), the port director may, at his discretion, require appropriate proof that the animals or birds were specially imported pursuant to negotiations conducted prior to importation for the delivery of animals or birds of a named species meeting agreed specifications of reasonable particularity and that they are intended at the time of importation for public exhibition in a collection maintained for scientific or educational purposes and not for sale or for use in connection with any enterprise conducted for profit. The fact that an animal or bird may have been sent on approval shall not preclude free entry under subheading 9810.00.70, HTSUS, when it is actually accepted as a part of the zoological collection and so exhibited. [T.D. 85-123, 50 FR 29953, July 23, 1985, as amended by T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997] § 10.76 Game animals and birds. (a) The following classes of live game animals and birds may be admitted free of duty for stocking purposes under the provisions of subheading 9817.00.70 without reference to the United States Customs Service, if the requirements of the Fish and Wildlife Service, Department of the Interior, have been complied with. animals 1. Cervidae, commonly known as deer and elk. 2. Leporidae, commonly known as rabbits. 3. Sciuridae, commonly known as squirrels. birds 1. Anatidae, commonly known as ducks and geese. 2. Gallinae, commonly known as turkeys, grouse, pheasants, partridges, and quail. 3. Otididae, commonly known as bustards. 4. Tinamidae, commonly known as tinamous. (b) Application for the free entry of other live animals or birds under subheading 9817.00.70, Harmonized Tariff Schedule of the United States shall be referred to the United States Customs Service for consideration. Animals imported for fur-farming purposes shall not be admitted free of duty under that paragraph. (c) [Reserved] (d) Game animals and birds killed in foreign countries by residents of the United States, if not imported for sale or other commercial purposes, may be admitted free of duty without entry, if the person has no merchandise requiring a written declaration upon the filing of a declaration on U.S. Fish and Wildlife Service Form 3-177, Declaration for Importation or Exportation of Fish or Wildlife. No bond or cash deposit to insure the destruction or exportation of the plumage of such birds shall be required. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35475, Aug. 16, 1982; T.D. 86-118, 51 FR 22515, June 20, 1986; T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 90-78, 55 FR 40166, Oct. 2, 1990] § 10.77 [Reserved] Products of American Fisheries § 10.78 Entry. (a) No entry shall be required for fish or other marine products taken on the high seas by vessels of the U.S. or by residents of the U.S. in undocumented vessels owned in the U.S. when such fish or other products are brought into port by the taking vessel or are transferred at sea to another fishing vessel of the same fleet and brought into port. (b) An American fishery, within the meaning of Subchapter XV of Chapter 98, Harmonized Tariff Schedule of the United States, is defined as a fishing enterprise conducted under the American flag by vessels of the United States on the high seas or in foreign waters in which such vessels have the right by treaty or otherwise, to take fish or other marine products and may include a shore station operated in conjunction with such vessels by the owner or master thereof. (c) The employment of citizens of a foreign country by an American fishery is permissible but the purchase by an American fishery of fish or other marine products taken by citizens of a foreign country on the high seas or in foreign waters will subject such fish or other marine products to treatment as foreign merchandise. (d) Products of an American fishery shall be entitled to free entry although prepared, preserved, or otherwise changed in condition, provided the work is done at sea by the master or crew of the fishery or by persons employed by and under the supervision of the master or owner of the fishery. Fish (except cod, haddock, hake, pollock, cusk, mackerel, and swordfish) the product of an American fishery landed in a foreign country and there not further advanced than beheaded, eviscerated, packed in ice, frozen and with fins removed, shall be entitled to free entry, whether or not such processing is done by the American fishery. Products of an American fishery prepared or preserved on the treaty coasts of Newfoundland, Magdalen Islands, or Labrador, as such coasts are defined in the Convention of 1818 between the United States and Great Britain, shall be entitled to free entry only if the preparation or preservation is done by an American fishery. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988] § 10.79 [Reserved] Salt For Curing Fish § 10.80 Remission of duty; withdrawal; bond. Imported salt in bond may be used in curing fish taken by vessels licensed to engage in the fisheries, and in curing fish in the shores of the navigable waters of the U.S., whether such fish are taken by licensed or unlicensed vessels, and upon proof that the sale has been used for either of such purposes, the duties on the same shall be remitted. (Section 313(e), Tariff Act of 1930, 19 U.S.C. 1313(e)). Imported salt entered for warehouse may be withdrawn under bond for use in curing fish. Upon proof that the salt has been so used, the duties thereon shall be remitted. In no case shall the quantity of salt withdrawn exceed the reasonable requirements of the case. Withdrawal shall be made on Customs Form 7501, or its electronic equivalent. Each withdrawal shall contain the statement prescribed for withdrawals in § 144.32 of this chapter. When the withdrawal is made by a person other than the importer of record, a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter for the production of proof of proper use shall be filed. Upon acceptance of the bond, a withdrawal permit shall be issued on Customs Form 7501, or its electronic equivalent. [T.D. 89-1, 53 FR 51251, Dec. 21, 1988, as amended by T.D. 95-81, 60 FR 52295, Oct. 6, 1995; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.81 Use in any port. (a) Salt withdrawn under bond for use in curing fish on the shores of navigable waters may be used for such purpose at any port, but the evidence of use in such cases shall be submitted through the director of the port where the salt was used. (b) If desired, salt to be used in curing fish on shore at another port than that in which it is warehoused in bond may be withdrawn under a transportation entry and shipped in bond to the other port at which it is to be used, where it may be entered on Customs Form 7501, or its electronic equivalent, which shall show withdrawal of the salt for use in curing fish. Thereupon, and upon the filing of a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, such salt may be used without being sent to a bonded warehouse or public store. In such a case the proof of use shall be filed at the latter port. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 95-81, 60 FR 52295, Oct. 6, 1995; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.82 [Reserved] § 10.83 Bond; cancellation; extension. (a) If it shall appear to the satisfaction of the Center director holding the bond referred to in § 10.80, that the entire quantity of salt covered by the bond has been duly accounted for, either by having been used in curing fish or by the payment of duty, the Center director may cancel the charges against the bond. The Center director may require additional evidence in corroboration of the proof of use produced. (b) On application of the person making the withdrawal, the period of the bond may be extended 1 year so as to allow the salt to be used during the time of extension in curing fish with the same privileges as if used during the original period. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20067, May 29, 1987] Automotive Products § 10.84 Automotive vehicles and articles for use as original equipment in the manufacture of automotive vehicles. (a)(1) Certain motor vehicles and motor vehicle equipment are eligible for duty-free entry as proclaimed by the President under the Automotive Products Trade Act of 1965. The articles designated for such duty-free treatment are defined in General Note 3(c)(iii), HTSUS (19 U.S.C. 1202). Specifically, such articles are those designated [as “Free (B)”] in the “Special” subcolumn in Chapter 87, HTSUS, and must qualify as “Canadian articles” as defined in General Note 3(c)(iii)(A)(1), HTSUS. To claim exemption from duty under the Automotive Products Trade Act of 1965, an importer must establish, to the satisfaction of the appropriate Customs officer, that the article in question qualifies as a “Canadian article” for purposes of General Note 3(c)(iii)A)(1), HTSUS. The Customs officer may accept as satisfactory evidence a certificate executed by the exporter as set forth in paragraph (b) of this section, subject to any verification he may deem necessary. Alternatively, the Customs officer may determine that under the circumstances of the importation a certificate is unnecessary. (2) Under the United States-Canada Free-Trade Agreement and implementing legislation (Pub. L. 100-449, 102 Stat. 1851) a manufacturer of motor vehicles may elect to average, over its 12-month financial year, its calculation of the value-content requirement for vehicles in establishing its eligibility for tariff preference. Requirements for averaging are set forth in §§ 10.310 and 10.311. (b)(1) When all materials used at any stage in the production of the imported article are wholly obtained or produced in Canada or the United States, or both, a certificate, or its electronic equivalent, in the following form may be accepted as evidence that the commodity is a “Canadian article”: All materials contained in the product covered by the __________ (Describe the invoice, bill of lading, or other document or statement identifying the shipment) annexed or appended to this certificate of Canadian origin at the time it was subscribed were wholly obtained or produced in Canada or the United States, or both. No materials other than those which were wholly obtained or produced in Canada or the United States, or both, were incorporated into this product or any of its components at any stage of production or in the production of any intermediate product used at any stage in the chain of production in Canada or the United States, or both. (2) When any material used at any stage in the production of an imported article or any of its components is not wholly obtained or produced in Canada or the United States, or both, a certificate, or its electronic equivalent, in the following form may be accepted as evidence that the commodity is nevertheless a “Canadian article”: The product covered by the __________ (Describe the invoice, bill of lading, or other document or statement identifying the shipment) annexed or appended to this certificate of Canadian origin at the time it was subscribed is an originating good so as to be a Canadian article. There were used in its production in Canada __________ (Description sufficient for tariff classification of the materials, and number of units) of third country materials of which the price paid was __________ per unit of quantity, plus __________ which represents all costs incurred in transporting the materials to the location of the producer and the duties, taxes, and brokerage fees on the materials, if such costs were not included in the price paid. (3) If such Customs officer is satisfied that the revenue will be protected adequately thereby, he may accept in lieu of the certificate specified in paragraph (b)(2) of this section a certificate, or its electronic equivalent, in the following form when the merchandise covered thereby has been produced with third country material but is an originating good under a specific rule of origin for the merchandise: The product covered by the __________ (Describe the invoice, bill of lading, or other document or statement identifying the shipment) annexed or appended to this certificate of Canadian origin at the time it was subscribed is an originating good so as to be a Canadian article. There were or may have been used in its production in Canada or the United States, or both, materials of a third country. It is impractical to ascertain the exact number of units of third country material, if any, used in its production or the price paid (and other costs required to be included in the price paid) of such materials but to the best of (my) (our) (its) knowledge the materials are described (sufficient for tariff classification purposes) as follows: __________. (4) The certificates described in paragraphs (b)(2) and (b)(3) of this section, or their electronic equivalents, shall not be accepted if the statements therein make it evident that the importation is not a “Canadian article” within the meaning of General Note 3(c), HTSUS. (5) If more than one kind of article is covered by a certificate provided for in paragraph (b) (1), (2), or (3) of this section, the information required by the certificate shall be shown with respect to each kind. When more than one kind of material, other than originating material, is used in the production of an article covered by such a certificate, the certificate shall state the number of units, a description sufficient for tariff classification purposes, the price paid, and, if not included in the price paid, the costs incurred in transporting the materials to the location of the producer and duties, taxes and brokerage fees paid in Canada and/or the United States on the material, per unit of each kind of materials. (6) A certificate conforming to paragraph (b) (1), (2), or (3) of this section shall be accepted as evidence of the facts alleged therein only if: (i) There is annexed thereto a copy of the commercial invoice or bill of lading, or the electronic equivalent, covering the articles or other documentary evidence which identifies the article to which the certificate pertains, (ii) The certificate, or its electronic equivalent, is signed by the manufacturer or producer of the article to which it pertains, or by the person who exported the articles from Canada, and (iii) It clearly appears that such copy or other documentary evidence was annexed to the certificate when it was signed. (c) In lieu of the certification in paragraph (b) (1), (2), or (3) of this section, a manufacturer of motor vehicles who claims a preference under the United States-Canada Free-Trade Agreement and elects to average pursuant to § 10.310(a), shall be subject to the requirements of §§ 10.301 to 10.311 of this part. (d) When an importer makes an entry, or withdrawal from warehouse, for consumption of articles for use as “original motor-vehicle equipment” as that term is defined in General Note 3(c)(iii), HTSUS, he shall file in connection therewith his declaration that the articles are being imported for use as original equipment in the manufacture in the United States of the kinds of motor vehicles specified in the General Note and furnish the name and address of the motor vehicle manufacturer. A copy of the written order, contract, or letter of intent shall be attached to the importer's declaration except that if the Center director is satisfied that a copy of the written order, contract, or letter of intent will be made available by the importer or ultimate consignee for inspection by customs officials upon request during a period of 3 years from the date of such entry or withdrawal from warehouse, the production of such documents will not be required. Proof of use need not be furnished. (e) If, after a Canadian article has been accorded the status of original motor-vehicle equipment, it is decided to divert the article from its intended use in the manufacture in the United States of motor vehicles, the importer or other person deciding to divert the article from such intended use shall give notice in writing of the decision to the CBP, either at the port of entry or electronically or where the offices of the importer are located and either make arrangements for its destruction or exportation under Customs supervision or pay duties in accordance with General Note 3(c)(iii)(B)(2), HTSUS. If such article is not destroyed or exported under Customs supervision or the duties paid, the article, or its value, shall be subject to forfeiture. [T.D. 89-3, 53 FR 51765, Dec. 23, 1988, as amended by T.D. 92-8, 57 FR 2453, Jan. 22, 1992; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Master Records, And Metal Matrices § 10.90 Master records and metal matrices. (a) Consumption entries covering importations under subheading 8524.99.20, HTSUS, shall be filed at a port in the Customs district in which the factory where the articles will be used is located. (b) The invoice, or its electronic equivalent, filed with the entry shall contain or be supported by a detailed statement of the cost of production, or its electronic equivalent, in the country where made, of each master record or metal matrix covered thereby. (c) A bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter shall be filed for importations under this section. (d) Entries already filed and future entries shall be liquidated in due course without the assessment of duty, but liability on bonds given with the entries shall be discontinued with respect to any article covered thereby only upon payment of liquidated damages in an amount equal to the duties which would have accrued had the master records or metal matrices been imported for use otherwise than in the manufacture of sound records for export purposes, or upon satisfactory proof that the master records or metal matrices obtained therefrom have been exported or destroyed under Customs supervision, and that all sound records made with the use of such articles have been exported. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 89-1, 53 FR 51251, Dec. 21, 1988; T.D. 90-78, 55 FR 40166, Oct. 2, 1990; T.D. 97-82, 62 FR 51769, Oct. 3, 1997; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Prototypes § 10.91 Prototypes used exclusively for product development and testing. (a) Duty-free entry; declaration of use; extension of liquidation Entry or withdrawal for consumption. (2) Importer declaration Entry accepted as declaration. (ii) Proof (declaration) of actual use. (A) A description of the use that is being and/or that has been made of the articles set forth in sufficient detail so as to enable the Center director to determine whether the articles have been entitled to entry as claimed; (B) A statement that the articles have not and are not to be put to any other use after the articles have been entered or withdrawn from warehouse for consumption and prior to the completion of their use under HTSUS 9817.85.01 (also see paragraphs (c) and (d) of this section concerning the disposition(s) to which the articles may be put following their use under HTSUS subheading 9817.85.01); and (C) A statement that the articles or any parts of the articles have not been and are not intended to be sold, or incorporated into other products that are sold, after the articles have been entered or withdrawn from warehouse for consumption and prior to the completion of their use as provided in HTSUS subheading 9817.85.01 ( see (b) Articles classifiable as prototypes Prototypes defined. (i) Are either in the preproduction, production or postproduction stage and are to be used exclusively for development, testing, product evaluation, or quality control purposes (not including automobile racing for purse, prize or commercial competition); and (ii) In the case of originals or models of articles that are either in the production or postproduction stage, are associated with a design change from current production (including a refinement, advancement, improvement, development or quality control in either the product itself or the means of producing the product). (2) Additional requirements. (i) Importations limited. (ii) Sale prohibited after entry and prior to use. (iii) Articles subject to laws of another agency. (iv) Articles excluded from being prototypes. (c) Sale of prototype following use Sale. (2) Notice of sale required. see (3) Form and content of notice; tender of duty. see see (i) The identity of the prototype; the consumption entry number under which it was imported; a copy of the declaration of actual use, if proof of actual use was requested under paragraph (a)(2)(ii) of this section; and a detailed description of the condition of the prototype following use for the intended permissible purposes, including any damage, degradation or deterioration to the article resulting from such use and/or otherwise resulting to the article from any other cause prior to its sale for scrap, waste, or recycling; (ii) The name and address of the party to whom the article was sold, and (if known) the use to which the party intends to put the article; (iii) The HTSUS subheading number for scrap, waste, or recycled material, as applicable, claimed in connection with the sale of the prototype, together with the corresponding rate of duty in effect at the time the prototype was originally imported for consumption; (iv) The value of the prototype article (if dutiable and the duty owed is based upon value) ( see (v) The title of the party executing the declaration and the date of execution. (d) Prototypes not sold following use. see (e) Recordkeeping; retention and production Recordkeeping. see (i) Documents supporting the proof (declaration) of actual use must: (A) Establish that the identity and description of the prototype article is the same article that the consumption entry was made for under subheading 9817.85.01, HTSUS; and (B) Describe the circumstances of the use of the article; the operations, testing, review, manipulation, experimentation, and/or other exercises that are being and/or that have been conducted in connection with the prototype; and the location, such as the plant or production facility, where these activities occurred, sufficient to demonstrate that the purposes enumerated in HTSUS subheading 9817.85.01 are taking and/or have actually taken place. (ii) Documents supporting the notice of sale must establish that: (A) The identity of the prototype sold is the same article for which a consumption entry was made under subheading 9817.85.01 HTSUS when it was imported, and that the article was in the condition described in the notice of sale; (B) The article was sold to the party identified in the notice of sale; (C) The HTSUS subheading number for scrap, waste, or recycled material, as applicable, claimed in connection with the sale of the prototype is accurate; (D) The date that the prototype was originally imported for consumption, and the corresponding rate of duty in effect at the time for the applicable HTSUS subheading; and (E) The value of the prototype article (if dutiable and the duty owed is based upon value) ( see (2) Relevant value for used prototype or parts sold. (f) Articles admitted under TIB Duty-free entry available. (i) The article meets the definition for “prototypes” in paragraph (b) of this section (U.S. Note 6(a) to subchapter XVII, chapter 98, HTSUS); and (ii) The TIB entry for the article was in effect and had not been closed, and the TIB period for the article had not expired, as of November 9, 2000. (2) Procedure for converting TIB entry to duty-free entry Importer request. (ii) Action by CBP. [CBP Dec. 04-36, 69 FR 63449, Nov. 2, 2004, as amended by CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] §§ 10.92-10.97 [Reserved] Fluxing Material § 10.98 Copper-bearing fluxing material. (a) For the purpose of this section, ores usable as a flux or sulphur reagent, mentioned in the provision for such ores in subheading 2603.00.00, Harmonized Tariff Schedule of the United States, shall include only ores which contain by weight not over 15 percent copper. (b) [Reserved] (c) There shall be filed in connection with the entry of such copper-bearing ores, either for consumption or warehouse, a declaration of the importer, or its electronic equivalent, that the material is to be used for fluxing purposes only. In the case of a consumption entry, the estimated tax shall be deposited at the time of entry. Liquidation of entries shall be suspended pending proof of use for fluxing purposes as hereinafter provided. (d) Samples of the material shall be taken in accordance with the commercial method in effect at the plant if to be used in a bonded smelting warehouse, or in accordance with §§ 151.52 through 151.55 of this chapter if entered for consumption, and the copper content thereof shall be determined by the Government chemist in accordance with the assay. (e) The management of the smelting or converting plant shall file with the appropriate Customs officer at the port or ports where the entries are to be liquidated, a statement based on its records of operation for each quarterly period showing for each furnace or converter the total quantity of material charged during each month or part thereof of each quarter, the total quantity of material used for fluxing purposes, and the quantity of imported ores used for fluxing purposes for which free entry was claimed under the above-mentioned provision, together with the copper content of such imported ores computed in accordance with the Government assay. If the quantity of ores used for fluxing purposes in any furnace or converter during any month or part thereof of any quarter is in excess of 25 percent of the charge of such furnace or converter, the quarterly statement shall be accompanied by an explanation of the necessity for using such quantity for fluxing purposes. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17445, July 2, 1973; T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 89-1, 53 FR 51251, Dec. 21, 1988; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Ethyl Alcohol § 10.99 Importation of ethyl alcohol for nonbeverage purposes. (a) If claim is made by an importer other than the United States or a governmental agency thereof for the classification of ethyl alcohol of an alcoholic strength by volume of 80 percent volume or higher under subheading 2207.10.60, Harmonized Tariff Schedules of the United States, the importer or his agent shall file in connection with the entry a declaration, or its electronic equivalent, that the alcohol is to be used for nonbeverage purposes only and whether the alcohol is to be used for fuel purposes. Customs shall release the alcohol for transfer, under internal revenue bond, to a distilled spirits plant upon deposit of estimated duty, if any, and without the payment of the internal revenue tax upon receipt of a transfer record for bulk spirits. In addition, a package gauge record must be submitted to Customs if the alcohol is in packages, as specified in subpart I of part 251, Bureau of Alcohol, Tobacco and Firearms (BATF) Regulations (27 CFR part 251, subpart I). The transfer shall be accomplished in accordance with subpart L of part 251, Bureau of Alcohol, Tobacco and Firearms Regulations (27 CFR part 251, subpart L). (b) An appropriate BATF permit shall be filed with Customs in connection with the withdrawal of ethyl alcohol from Customs custody by the United States or any governmental agency thereof for its own use for nonbeverage purposes. Such permit shall be filed before release under the entry without the deposit of estimated duties, if any, and internal revenue tax, or before release in accordance with the provisions of § 141.102(d) of this chapter. (See subpart M of part 251, Bureau of Alcohol, Tobacco and Firearms Regulations (27 CFR part 251, subpart M)). (c) The procedures for the withdrawal free of tax on the entry of ethyl alcohol for nonbeverage purposes from the Virgin Islands are found in subpart O of part 250, Bureau of Alcohol, Tobacco and Firearms Regulations (27 CFR part 250, subpart O). [T.D. 89-65, 54 FR 28413, July 6, 1989, as amended by CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] United States Government Importations § 10.100 Entry, examination, and tariff status. Except as otherwise provided for in §§ 10.101, 10.102, 10.104, 141.83(d)(8), 141.102(d), or elsewhere in this chapter, importations made by or for the account of any agency or office of the United States Government are subject to the usual Customs entry and examination requirements. In the absence of express exemptions from duty, such as are contained in subheadings 9808.00.10, 9808.00.20, 9808.00.30, 9808.00.40, 9808.00.50, 9808.00.60, 9808.00.70, or other subheadings in the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) providing for free entry, such importations are also subject to duty. [T.D. 77-23, 42 FR 2310, Jan. 11, 1977, as amended by T.D. 89-1, 53 FR 51251, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997] § 10.101 Immediate delivery. (a) Shipments entitled to immediate delivery. (b) Immediate delivery applications. (c) Carrier's certificates and stipulations. (d) Bond. I, ________, ________ (Title), a duly authorized representative of the (Name of United States Government department or agency) stipulate and agree on behalf of such department or agency that all applicable provisions of the Tariff Act of 1930, as amended, and the regulations thereunder, and all other laws and regulations, relating to the release and entry of merchandise will be observed and complied with in all respects. (Signature) (e) Timely entries required. [T.D. 77-23, 42 FR 2310, Jan. 11, 1977, as amended by T.D. 87-75, 52 FR 20067, May 29, 1987; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] § 10.102 Duty-free entries. (a) Invoice or declaration. (b) Certification. (1) Articles for military departments, subheading 9808.00.30, HTSUS. (Name) (Title), who has been designated to execute free-entry certificates for the above-named department. (Grade or Rank) (Organization) (2) Articles for the Defense Logistics Agency, subheading 9808.00.40, HTSUS. (Name) (Title), Defense Logistics Agency, who has been duly authorized to execute the above certificate. (3) Articles for the Department of Energy, subheading 9808.00.50, HTSUS. (Name) (Title), who has been authorized to execute free-entry certificates for the Department of Energy. (c) Release of shipments. (d) Entry in Government name. [T.D. 77-23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 85-123, 50 FR 29953, July 23, 1985; T.D. 89-1, 53 FR 51251, Dec. 21, 1988; T.D. 93-44, 58 FR 34523, June 28, 1993; T.D. 95-81, 60 FR 52295, Oct. 6, 1995; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015; CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.103 American goods returned. (a) Certificate required. I hereby certify: 1. That the following articles imported in the ________________________ (Name of Carrier) at the port of ________________________ (Port) on ____________ (Date) consist of returned products which are the growth, produce, or manufacture of the United States, and have been returned to the United States without having been advanced in value or improved in condition by any process of manufacture or other means, and that no drawback has been or will be claimed on such articles, and that the articles currently belonging to and are for the further use of ________________________ (Agency or Office) Number of containers Bill of lading No. 1 General description of articles 1 2. That the shipment does not contain military scrap. 3. That the shipment is entitled to entry under subheading 9801.00.10, Harmonized Tariff Schedule of the United States (HTSUS) free of duty. 4. That I am a military installation transportation officer having knowledge of the facts involved in this certificate. or I am an officer or official authorized by ________________ (Agency or Office) (Whichever is applicable) to execute this certificate. (Name) (Rank and branch of service or Agency or Office) (b) Combined certificate when articles are intermingled. (c) Execution of certificate. [T.D. 77-23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 89-1, 53 FR 51251, Dec. 21, 1988] § 10.104 Temporary importation entries for United States Government agencies. The entry of articles brought into the United States temporarily by an agency or office of the United States Government and claimed to be exempt from duty under Chapter 98, Subchapter XIII, Heading 9813, Harmonized Tariff Schedule of the United States (HTSUS), shall be made on Customs Form 7501, or its electronic equivalent. No bond shall be required if the agency or office files a stipulation in the form set forth in § 141.102(d) of this chapter. In those cases in which the provisions of Chapter 98, Subchapter XIII, HTSUS (19 U.S.C. 1202), are not met, however, the Center director will proceed as if a bond had been filed to cover the particular importation. Articles temporarily imported by a Government agency or office under this section are entitled to immediate delivery under the procedures set forth in § 10.101. [T.D. 77-23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 89-1, 53 FR 51251, Dec. 21, 1988; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Wheat § 10.106 [Reserved] Rescue and Relief Work § 10.107 Equipment and supplies; admission. (a) There shall be admitted without entry and without the payment of duty or any tax imposed upon or by reason of importation of any article described in section 322(b), Tariff Act of 1930, as amended, subject to compliance with the following conditions: (1) Before importation or as soon thereafter as possible, and in every case before the expiration of 10 days after importation, a report, or its electronic equivalent, shall be made to the nearest Customs officer by the person in charge of sending the article from the foreign country, or by the person for whose account it was brought into the United States, stating the character, quantity, destination, and use to be made of the article. (2) If practicable, the article shall be exported under Customs supervision. In any other case a report shall be made by the person in charge of the exportation as soon as possible after exportation to the Customs officer to whom the arrival was reported, stating the character, quantity, and circumstances of the exportation. (b) In the case of each article admitted under paragraph (a) of this section, the port director shall satisfy himself as to whether the article was exported within a reasonable time, or that it has been properly expended or destroyed. If an article is so far destroyed, in connection with a use contemplated for it by section 322 (b) that it has only a salvage value, it shall not be required to be exported. (c) Any article admitted under paragraph (a) of this section which is used in the United States otherwise than for a purpose contemplated for it by section 322(b), or which is not exported within 90 days after its arrival in the United States, or within such longer time as may be specially authorized by the port director or Headquarters, U.S. Customs Service, shall be seized and forfeited to the United States. [28 FR 14663, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Products Exported Under Lease and Reimported § 10.108 Entry of reimported articles exported under lease. Free entry shall be accorded under subheading 9801.00.20, Harmonized Tariff Schedule of the United States (HTSUS), whenever it is established to the satisfaction of the Center director that the article for which free entry is claimed was duty paid on a previous importation or was previously entered free of duty pursuant to the Caribbean Basin Economic Recovery Act or Title V of the Trade Act of 1974, is being reimported without having been advanced in value or improved in condition by any process of manufacture or other means, was exported from the United States under a lease or similar use agreement, and is being reimported by or for the account of the person who imported it into, and exported it from, the United States. [T.D. 94-40, 59 FR 17474, Apr. 13, 1994] Strategic Materials Obtained by Barter or Exchange § 10.110 [Reserved] Late Filing of Free Entry and Reduced Duty Documents § 10.112 Filing free entry documents or reduced duty documents after entry. Whenever a free entry or a reduced duty document, form, or statement required to be filed in connection with the entry is not filed at the time of the entry or within the period for which a bond was filed for its production, but failure to file it was not due to willful negligence or fraudulent intent, such document, form, or statement may be filed at any time prior to liquidation of the entry or, if the entry was liquidated, before the liquidation becomes final. See § 113.43(c) of this chapter for satisfaction of the bond and cancellation of the bond charge. [T.D. 74-227, 39 FR 32015, Sept. 4, 1974] Instruments and Apparatus for Educational and Scientific Institutions § 10.114 General provisions. The consolidated regulations of the Commerce and Treasury Departments relating to the entry of instruments and apparatus for educational and scientific institutions are contained in 15 CFR part 301. [T.D. 82-224, 47 FR 53727, Nov. 29, 1982] §§ 10.115-10.119 [Reserved] Visual or Auditory Materials § 10.121 Visual or auditory materials of an educational, scientific, or cultural character. (a) Where photographic film and other articles described in subheading 9817.00.40, Harmonized Tariff Schedule of the United States (HTSUS), are claimed to be free of duty under subheading 9817.00.40, HTSUS, there must be filed, in connection with the entry covering such articles, a document issued by the U.S. Department of State, or its electronic equivalent, certifying that it has determined that the articles are visual or auditory materials of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character as required by U.S. note 1(a)(i), Subchapter XVII, chapter 98, HTSUS. (b) Articles entered under subheading 9817.00.40, HTSUS, will be released from CBP custody prior to submission of the document required in paragraph (a) of this section only upon the deposit of estimated duties with CBP, either at the port of entry or electronically. Liquidation of an entry which has been released under this procedure will be suspended for a period of 314 days from the date of entry or until the required document is submitted, whichever comes first. In the event that documentation is not submitted before liquidation, the merchandise will be classified and liquidated in the ordinary course, without regard to subheading 9817.00.40, HTSUS. [CBP Dec. 10-33, 75 FR 69585, Nov. 15, 2010; CBP Dec. 12-02, 77 FR 10369, Feb. 22, 2012; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Rate of Duty Dependent Upon Actual Use § 10.131 Circumstances in which applicable. The provisions of §§ 10.131 through 10.139 are applicable in those circumstances in which the rate of duty applicable to merchandise is dependent upon actual use, unless there is a specific provision in this part which governs the treatment of the merchandise. However, specific marking or certification requirements, such as those for bolting cloths in section 10.58, may be applicable to merchandise subject to the provisions of sections 10.131-10.139. [T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 86-118, 51 FR 22515, June 20, 1986] § 10.132 [Reserved] § 10.133 Conditions required to be met. When the tariff classification of any article is controlled by its actual use in the United States, three conditions must be met in order to qualify for free entry or a lower rate of duty unless the language of the particular subheading of the Harmonized Tariff Schedule of the United States applicable to the merchandise specifies other conditions. The conditions are that: (a) Such use is intended at the time of importation. (b) The article is so used. (c) Proof of use is furnished within 3 years after the date the article is entered or withdrawn from warehouse for consumption. [T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988] § 10.134 Declaration of intent. A showing of intent by the importer as to the actual use of imported merchandise shall be made by filing with the entry for consumption or for warehouse a declaration as to the intended use of the merchandise, or by entering the proper subheading of an actual use provision of the Harmonized Tariff Schedule of the United States (HTSUS) and the reduced or free rate of duty on the entry form. Entry made under an actual use provision of the HTSUS may be construed as a declaration that the merchandise is entered to be used for the purpose stated in the HTSUS, provided the Center director is satisfied the merchandise will be so used. However, the Center director shall require a written declaration to be filed if he is not satisfied that merchandise entered under an actual use provision will be used for the purposes stated in the HTSUS. [T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988] § 10.135 Deposit of duties. When the requirement of § 10.134 has been met the merchandise may be entered or withdrawn from warehouse for consumption without deposit of duty when proof of use will result in free entry, or with deposit of duty at the lower rate when proof of use will result in a lower rate of duty. [T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 84-213, 49 FR 41166, Oct. 19, 1984] § 10.136 Suspension of liquidation. Liquidation of an entry covering merchandise for which a declaration of intent has been made pursuant to § 10.134 and any required deposit of duties made, shall be suspended until proof of use is furnished or the 3-year period allowed for production thereof has expired. [T.D. 71-139, 36 FR 10726, June 2, 1971] § 10.137 Records of use. (a) Maintenance by importer. (b) Retention of records. (c) Examination of records. [T.D. 71-139, 36 FR 10726, June 2, 1971] § 10.138 Proof of use. Within 3 years from the date of entry or withdrawal from warehouse for consumption, the importer shall submit in duplicate in support of his claim for free entry or for a reduced rate of duty a certificate executed by (1) the superintendent or manager of the manufacturing plant, or (2) the individual end-user or other person having knowledge of the actual use of the imported article. The certificate shall include a description of the processing in sufficient detail to show that the use contemplated by the law has actually taken place. A blanket certificate covering all purchases of a given type of merchandise from a particular importer during a given period, or all such purchases with specified exceptions, may be accepted for this purpose, provided the importer shall furnish a statement showing in detail, in such manner as to be readily identified with each entry, the merchandise which he sold to such manufacturer or end-user during such period. [T.D. 71-139, 36 FR 10727, June 2, 1971] § 10.139 Liquidation. (a) In general. (b) Exception for blackstrap molasses. total sugars × 100/Brix not in excess of 71. In the event of doubt, an ash determination may be made. An ash content of not less than 7 percent indicates a blackstrap molasses within the meaning of this paragraph. [T.D. 71-139, 36 FR 10727, June 2, 1971, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988] Importations Not Over $200 and Bona Fide Gifts § 10.151 Importations not over $800. (a) Subject to the conditions in § 10.153, and subject to the provisions of paragraph (b) of this section, the port director shall pass free of duty and tax any shipment of merchandise, as defined in § 101.1 of this chapter, imported by one person on one day having a fair retail value, as evidenced by an oral declaration or the bill of lading (or other document filed as the entry) or manifest listing each bill of lading, in the country of shipment not exceeding $800, unless he has reason to believe that the shipment is one of several lots covered by a single order or contract and that it was sent separately for the express purpose of securing free entry therefor or of avoiding compliance with any pertinent law or regulation. Merchandise subject to this exemption shall be entered under the informal entry procedures (see subpart C, part 143, and §§ 128.24, 145.31, 148.12, and 148.62 of this chapter). (b) The exemption provided in paragraph (a) of this section is suspended for merchandise arriving via all modes other than through the international postal network until such time as CBP determines that the application of the exemption is no longer inconsistent with the purpose of 19 U.S.C. 1321(a), no longer jeopardizes the revenue, and no longer facilitates unlawful importations. Notice of a modification or revocation of this suspension will be announced by the Commissioner in the Federal Register. [CBP Dec. 26-12, 91 FR 37800, June 24, 2026] § 10.152 Bona-fide gifts. Subject to the conditions in § 10.153 of this part, the port director shall pass free of duty and tax any article sent as a bona-fide gift from a person in a foreign country to a person in the United States, provided that the aggregate fair retail value in the country of shipment of such articles received by one person on one day does not exceed $100 or, in the case of articles sent from a person in the Virgin Islands, Guam, and American Samoa, $200. Articles subject to this exemption shall be entered under the informal entry procedures (see subpart C, part 143, and §§ 145.32, 148.12, 148.51, and 148.64, of this chapter). An article is “sent” for purposes of this section if it is conveyed in any manner other than on the person or in the accompanied or unaccompanied baggage of the donor or donee. [T.D. 94-51, 59 FR 30293, June 13, 1994] § 10.153 Conditions for exemption. Customs officers shall be further guided as follows in determining whether an article or parcel shall be exempted from duty and tax under § 10.151 or § 10.152: (a) A “bona fide gift” for purposes of § 10.152 is an article formerly owned by a donor (may be a commercial firm) who gave it outright in its entirety to a donee without compensation or promise of compensation. It does not include articles acquired by purchase, barter, promissory exchange, or similar transaction, nor does it include articles said to be “given” in conjunction with a purchase, barter, promissory exchange, or similar transaction, such as a so-called bonus article. (b) A parcel addressed to a person in the United States from an individual in a foreign country which contains a gift should be clearly marked on the outside to indicate that it contains a gift. Such marking is not conclusive evidence of a gift nor is the absence of such marking conclusive evidence that an article is not a gift. Ordinarily an article not exceeding $100 in fair retail value in the country of shipment sent from a person in a foreign country to a person in the United States ($200, in the case of an article sent from a person in the Virgin Islands, Guam, and American Samoa) will be recognizable as a gift from the nature of the article and obvious facts surrounding the shipment. (c) A parcel addressed to a person in the United States from a business firm in a foreign country would ordinarily not contain a gift from a donor in the foreign country. When such a parcel in fact contains an article entitled to free entry under § 10.152, the parcel should be clearly marked to indicate that it contains such a gift and a statement to this effect should be enclosed in the parcel. (d) Consolidated shipments addressed to one consignee shall be treated for purposes of §§ 10.151 and 10.152 as one importation. The foregoing shall not apply to shipments of bona fide gifts consolidated abroad for shipment to the United States when: (1) The consolidation for shipment to the United States is in a cargo van or similar containerization which is consigned to a common carrier, freight forwarder, freight handler, or other public service agency for distribution of the gift packages; (2) The separate gifts not exceeding $100 in fair retail value in the country of shipment ($200, in the case of articles sent from persons in the Virgin Islands, Guam, and American Samoa) included in the consolidated shipment are before shipment individually wrapped and addressed to the donee in the United States; (3) Each gift package is marked on the outside to indicate that it contains a gift not exceeding $100 in fair retail value in the country of shipment ($200, in the case of packages sent from persons in the Virgin Islands, Guam, and American Samoa); and (4) Each gift package is separately listed in the name of the addressee-donee on a packing list, manifest, bill of lading, or other shipping document. (e) No alcoholic beverage, cigars (including cheroots and cigarillos) and cigarettes containing tobacco, cigarette tubes, cigarette papers, smoking tobacco (including water pipe tobacco, pipe tobacco, and roll-your-own tobacco), snuff, or chewing tobacco, shall be exempted from the payment of duty and tax under § 10.151 or § 10.152. (f) The exemptions provided for in § 10.151 or § 10.152 are not to be allowed in respect of any shipment containing one or more gifts having an aggregate fair retail value in the country of shipment in excess of $100 ($200, in the case of articles sent from persons in the Virgin Islands, Guam, and American Samoa), except as indicated in paragraph (d) of this section. For example, an article ordinarily subject to an ad valorem rate of duty but sent as a gift, if the fair retail value exceeds the $100 (or $200) exemption, would be subject to a duty based upon its value under the provisions of section 402 or 402(a), Tariff Act of 1930, as amended (19 U.S.C. 1401a or 1402), even though the dutiable value is less than the $100 (or $200) exemption. (g) The exemption referred to in § 10.151 is not to be allowed in the case of any merchandise of a class or kind provided for in any absolute or tariff-rate quota, whether the quota is open or closed. In the case of merchandise of a class or kind provided for in a tariff-rate quota, the merchandise is subject to the rate of duty in effect on the date of entry. (h) The exemption provided for in § 10.151 is not to be allowed with respect to any tax imposed under the Internal Revenue Code collected by other agencies on imported goods. [T.D. 73-175, 38 FR 17445, July 2, 1973, as amended by T.D. 75-185, 40 FR 31753, July 29, 1975; T.D. 78-394, 43 FR 49787, Oct. 25, 1978; T.D. 85-123, 50 FR 29953, July 23, 1985; T.D. 94-51, 59 FR 30293, June 13, 1994; CBP Dec. No. 16-13, 81 FR 58833, Aug. 26, 2016] Generalized System of Preferences § 10.171 General. (a) Statutory authority. (b) Country defined. [T.D. 76-2, 40 FR 60047, Dec. 31, 1975, as amended by T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 00-67, 65 FR 59675, Oct. 5, 2000] § 10.172 Claim for exemption from duty under the Generalized System of Preferences. A claim for an exemption from duty on the ground that the Generalized System of Preferences applies shall be allowed by the Center director only if he is satisfied that the requirements set forth in this section and §§ 10.173 through 10.178 have been met. If duty-free treatment is claimed at the time of entry, a written claim shall be filed on the entry document by placing the symbol “A” as a prefix to the subheading of the Harmonized Tariff Schedule of the United States for each article for which such treatment is claimed. [T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 77-36, 42 FR 5041, Jan. 27, 1977; T.D. 89-1, 53 FR 51252, Dec. 21, 1988; T.D. 94-47, 59 FR 25569, May 17, 1994; T.D. 99-27, 64 FR 13675, Mar. 22, 1999] § 10.173 Evidence of country of origin. (a) Shipments covered by a formal entry Merchandise not wholly the growth, product, or manufacture of a beneficiary developing country Declaration. GSP DECLARATION I, __________(name), hereby declare that the articles described below were produced or manufactured in ________________ (country) by means of processing operations performed in that country as set forth below and were also subjected to processing operations in the other country or countries which are members of the same association of countries as set forth below and incorporate materials produced in the country named above or in any other country or countries which are members of the same association of countries as set forth below: Number and date of invoices Description of articles and quantity Processing operations performed on articles Materials produced in a beneficiary developing country or members of the same association Description of processing operations and country of processing Direct costs of processing operations Description of material, production process, and country of production Cost or value of material Date Address Signature Title (ii) Retention of records and submission of declaration. (2) Merchandise wholly the growth, product, or manufacture of a beneficiary developing country. (b) Shipments covered by an informal entry. (c) Verification of documentation. [T.D. 94-47, 59 FR 25569, May 17, 1994] § 10.174 Evidence of direct shipment. (a) Documents constituting evidence of direct shipment. (b) Waiver of evidence of direct shipment. [T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 77-27, 42 FR 3162, Jan. 17, 1977] § 10.175 Imported directly defined. Eligible articles shall be imported directly from a beneficiary developing country to qualify for treatment under the Generalized System of Preferences. For purposes of §§ 10.171 through 10.178 the words “imported directly” mean: (a) Direct shipment from the beneficiary country to the United States without passing through the territory of any other country; or (b) If the shipment is from a beneficiary developing country to the U.S. through the territory of any other country, the merchandise in the shipment does not enter into the commerce of any other country while en route to the U.S., and the invoice, bills of lading, and other shipping documents show the U.S. as the final destination; or (c) If shipped from the beneficiary developing country to the United States through a free trade zone in a beneficiary developing country, the merchandise shall not enter into the commerce of the country maintaining the free trade zone, and (1) The eligible articles must not undergo any operation other than: (i) Sorting, grading, or testing, (ii) Packing, unpacking, changes of packing, decanting or repacking into other containers, (iii) Affixing marks, labels, or other like distinguishing signs on articles or their packing, if incidental to operations allowed under this section, or (iv) Operations necessary to ensure the preservation of merchandise in its condition as introduced into the free trade zone. (2) Merchandise may be purchased and resold, other than at retail, for export within the free trade zone. (3) For the purposes of this section, a free trade zone is a predetermined area or region declared and secured by or under governmental authority, where certain operations may be performed with respect to articles, without such articles having entered into the commerce of the country maintaining the free trade zone; or (d) If the shipment is from any beneficiary developing country to the U.S through the territory of any other country and the invoices and other documents do not show the U.S as the final destination, the articles in the shipment upon arrival in the U.S. are imported directly only if they: (1) Remained under the control of the customs authority of the intermediate country; (2) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the latter's sales agent; and (3) Were not subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition; or (e)(1) Shipment to the U.S. from a beneficiary developing country which is a member of an association of countries treated as one country under section 507(2), Trade Act of 1974, as amended (19 U.S.C. 2467(2)), through the territory of a former beneficiary developing country whose designation as a member of the same association for GSP purposes was terminated by the President pursuant to section 502(d), Trade Act of 1974, as amended (19 U.S.C. 2462(d)), provided the articles in the shipment did not enter into the commerce of the former beneficiary developing country except for purposes of performing one or more of the operations specified in paragraph (c)(1) of this section and except for purposes of purchase or resale, other than at retail, for export. (2) The designation of the following countries as members of an association of countries for GSP purposes has been terminated by the President pursuant to section 502(d) of the Trade Act of 1974 (19 U.S.C. 2462(d)): The Bahamas Brunei Darussalam Malaysia Singapore [T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 83-144, 48 FR 29684, June 28, 1983; T.D. 84-237, 49 FR 47992, Dec. 7, 1984; T.D. 86-107, 51 FR 20816, June 9, 1986; T.D. 92-6, 57 FR 2018, Jan. 17, 1992; T.D. 94-47, 59 FR 25569, May 17, 1994; T.D. 95-30, 60 FR 18543, Apr. 12, 1995; T.D. 00-67, 65 FR 59675, Oct. 5, 2000] § 10.176 Country of origin criteria. (a) Merchandise produced in a beneficiary developing country or any two or more countries which are members of the same association of countries General. (2) Combining, packaging, and diluting operations. (i) Simple combining or packaging operations and mere dilution include, but are not limited to, the following: (A) The addition of batteries to devices; (B) Fitting together a small number of components by bolting, glueing, soldering, etc.; (C) Blending foreign and beneficiary developing country tobacco; (D) The addition of substances such as anticaking agents, preservatives, wetting agents, etc.; (E) Repacking or packaging components together; (F) Reconstituting orange juice by adding water to orange juice concentrate; and (G) Diluting chemicals with inert ingredients to bring them to standard degrees of strength; (ii) Simple combining or packaging operations and mere dilution will not be taken to include processes such as the following: (A) The assembly of a large number of discrete components onto a printed circuit board; (B) The mixing together of two bulk medicinal substances followed by the packaging of the mixed product into individual doses for retail sale; (C) The addition of water or another substance to a chemical compound under pressure which results in a reaction creating a new chemical compound; and (D) A simple combining or packaging operation or mere dilution coupled with any other type of processing such as testing or fabrication (for example, a simple assembly of a small number of components, one of which was fabricated in the beneficiary developing country where the assembly took place); and (iii) The fact that an article has undergone more than a simple combining or packaging operation or mere dilution is not necessarily dispositive of the question of whether that processing constitutes a substantial transformation for purposes of determining the country of origin of the article. (b) [Reserved] (c) Merchandise grown, produced, or manufactured in a beneficiary developing country. [T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 00-67, 65 FR 59675, Oct. 5, 2000] § 10.177 Cost or value of materials produced in the beneficiary developing country. (a) “Produced in the beneficiary developing country” defined. (1) Wholly the growth, product, or manufacture of the beneficiary developing country; or (2) Substantially transformed in the beneficiary developing country into a new and different article of commerce. (b) Questionable origin. (c) Determination of cost or value of materials produced in the beneficiary developing country. (i) The manufacturer's actual cost for the materials; (ii) When not included in the manufacturer's actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant; (iii) The actual cost of waste or spoilage (material list), less the value of recoverable scrap; and (iv) Taxes and/or duties imposed on the materials by the beneficiary developing country, or an association of countries treated as one country, provided they are not remitted upon exportation. (2) Where the material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by computing the sum of: (i) All expenses incurred in the growth, production, manufacture or assembly of the material, including general expenses; (ii) An amount for profit; and (iii) Freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant. If the pertinent information needed to compute the cost or value of the materials is not available, the appraising officer may ascertain or estimate the value thereof using all reasonable ways and means at his disposal. [T.D. 76-2, 40 FR 60049, Dec. 31, 1975, as amended by T.D. 86-118, 51 FR 22515, June 20, 1986] § 10.178 Direct costs of processing operations performed in the beneficiary developing country. (a) Items included in the direct costs of processing operations. (1) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; (2) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise; (3) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific merchandise; and (4) Costs of inspecting and testing the specific merchandise. (b) Items not included in the direct costs of processing operations. (1) Profit; and (2) General expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. [T.D. 76-2, 40 FR 60049, Dec. 31, 1975] § 10.178a Special duty-free treatment for sub-Saharan African countries. (a) General. (b) Eligible articles. (1) Watches, except those watches entered after June 30, 1989, that the President specifically determines, after public notice and comment, will not cause material injury to watch or watch band, strap, or bracelet manufacturing and assembly operations in the United States or the United States insular possessions; (2) Certain electronic articles; (3) Certain steel articles; (4) Footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel which were not eligible articles for purposes of the GSP on January 1, 1995, as the GSP was in effect on that date; (5) Certain semimanufactured and manufactured glass products; and (6) Any other articles which the President determines to be import-sensitive in the context of the GSP. (c) Claim for duty-free treatment. (d) Origin and related rules. (1) The term “beneficiary developing country,” wherever it appears, means “beneficiary sub-Saharan African country;' (2) In the GSP declaration set forth in § 10.173(a)(1)(i), the column heading “Materials produced in a beneficiary developing country or members of the same association” should read “Material produced in a beneficiary sub-Saharan African country, a former beneficiary sub-Saharan African country, or the U.S.;” (3) The provisions of § 10.175(c) will not apply; and (4) For purposes of determining compliance with the 35 percent value content requirement set forth in § 10.176(a): (i) An amount not to exceed 15 percent of the appraised value of the article at the time it is entered may be attributed to the cost or value of materials produced in the customs territory of the United States, and the provisions of § 10.177 will apply for purposes of identifying materials produced in the customs territory of the United States and the cost or value of those materials; and (ii) The cost or value of materials included in the article that are produced in more than one beneficiary sub-Saharan African country or former beneficiary sub-Saharan African country may be applied without regard to whether those countries are members of the same association of countries. (5) As used in this paragraph, the term “former beneficiary sub-Saharan African country” means a country that, after being designated by the President as a beneficiary sub-Saharan African country under section 506A of the Trade Act of 1974 (19 U.S.C. 2466a), ceased to be designated as such a beneficiary sub-Saharan African country by reason of its entering into a free trade agreement with the United States. (e) Importer requirements. (1) Must have records that explain how the importer came to the conclusion that the article qualifies for duty-free treatment; (2) Must have records that demonstrate that the importer is claiming that the article qualifies for duty-free treatment because it is the growth of a beneficiary sub-Saharan African country or because it is the product of a beneficiary sub-Saharan African country or because it is the manufacture of a beneficiary sub-Saharan African country. If the importer is claiming that the article is the growth of a beneficiary sub-Saharan African country, the importer must have records that indicate that the product was grown in that country, such as a record of receipt from a farmer whose crops are grown in that country. If the importer is claiming that the article is the product of, or the manufacture of, a beneficiary sub-Saharan African country, the importer must have records that indicate that the manufacturing or processing operations reflected in or applied to the article meet the country of origin rules set forth in § 10.176(a) and paragraph (d) of this section. A properly completed GSP declaration in the form set forth in § 10.173(a)(1) is one example of a record that would serve this purpose; (3) Must establish and implement internal controls which provide for the periodic review of the accuracy of the declarations or other records referred to in paragraph (e)(2) of this section; (4) Must have shipping papers that show how the article moved from the beneficiary sub-Saharan African country to the United States. If the imported article was shipped through a country other than a beneficiary sub-Saharan African country and the invoices and other documents from the beneficiary sub-Saharan African country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.175(d)(1) through (3) were met; (5) Must have records that demonstrate the cost or value of the materials produced in the United States and the cost or value of the materials produced in a beneficiary sub-Saharan African country or countries and the direct costs of processing operations incurred in the beneficiary sub-Saharan African country that were relied upon by the importer to determine that the article met the 35 percent value content requirement set forth in § 10.176(a) and paragraph (c) of this section. A properly completed GSP declaration in the form set forth in § 10.173(a)(1) is one example of a record that would serve this purpose; and (6) Must be prepared to produce the records referred to in paragraphs (e)(1), (e)(2), (e)(4), and (e)(5) of this section within 30 days of a request from Customs and must be prepared to explain how those records and the internal controls referred to in paragraph (e)(3) of this section justify the importer's claim for duty-free treatment. [T.D. 00-67, 65 FR 59675, Oct. 5, 2000, as amended by CBP Dec. 14-07, 79 FR 30392, May 27, 2014] Canadian Crude Petroleum § 10.179 Canadian crude petroleum subject to a commercial exchange agreement between United States and Canadian refiners. (a) Crude petroleum (as defined in Chapter 27, Additional U.S. Note 1, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)) produced in Canada may be admitted free of duty if the entry is accompanied by a certificate from the importer, or its electronic equivalent, establishing that: (1) The petroleum is imported pursuant to a commercial exchange agreement between United States and Canadian refiners which has been approved by the Secretary of Energy; (2) An equivalent amount of domestic or duty-paid foreign crude petroleum on which the importer has executed a written waiver of drawback, has been exported to Canada pursuant to the export license and previously has not been used to effect the duty-free entry of like Canadian products; and, (3) An export license has been issued by the Secretary of Commerce for the petroleum which has been exported to Canada. (b) The provisions of this section may be applied to: (1) Liquidated or reliquidated entries if the required certification is filed with CBP, either at the port of entry or electronically on or before the 180th day after the date of entry; and (2) Articles entered, or withdrawn from warehouse, for consumption, pursuant to a commercial exchange agreement. (c) Verification of the quantities of crude petroleum exported to or imported from Canada under such a commercial exchange agreement shall be made in accordance with import verification provided in Part 151, Subpart C, Customs Regulations (19 CFR part 151, subpart C). [T.D. 81-292, 46 FR 58069, Nov. 30, 1981, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988; T.D. 91-82, 56 FR 49845, Oct. 2, 1991; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Certain Fresh, Chilled, or Frozen Beef § 10.180 Certification. (a) The foreign official's meat-inspection certificate, or its electronic equivalent, required by U.S. Department of Agriculture regulations (9 CFR 327.4) shall be modified to include the certification below when fresh, chilled, or frozen beef is to be entered under the provisions of subheadings 0201.20.10, 0201.30.02, 0202.20.02, 0202.20.10, Harmonized Tariff Schedule of the United States (HTSUS). The certification shall be made, prior to exportation of the beef, by an official of the government of the exporting country and filed with Customs with the entry summary or with the entry when the entry summary is filed at the time of entry. The requirements of this section shall be in addition to those requirements contained in 9 CFR 327.4. Appropriate officials of the exporting country should consult with the U.S. Department of Agriculture as to the beef grades or standards within their country that satisfy the certification requirement. Exporters or importers of beef to be entered under the provisions of subheadings 0201.20.10, 0201.30.02, 0202.20.02, 0202.20.10, HTSUS, should consult with the U.S. Department of Agriculture prior to exportation in order to insure that the beef will satisfy the certification requirements. This certification is relevant only to U.S. Customs tariff classification and is not applicable to marketing of beef under U.S. Department of Agriculture grading standards, a matter within U.S. Department of Agriculture's jurisdiction. Certification I hereby certify to the best of my knowledge and belief that the herein described fresh, chilled, or frozen beef, meets the specifications prescribed in regulations issued by the U.S. Department of Agriculture (7 CFR 2853.106 (a) and (b)). (b) Appropriate officials of the following countries have agreed with the U.S. Department of Agriculture as to the grades or standards for fresh, chilled, or frozen beef within their respective countries which will satisfy the certification requirements of paragraph (a) of this section: Canada. [T.D. 82-8, 47 FR 945, Jan. 8, 1982, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015] Watches and Watch Movements From U.S. Insular Possessions §§ 10.181-10.182 [Reserved] Civil Aircraft § 10.183 Duty-free entry of civil aircraft, aircraft engines, ground flight simulators, parts, components, and subassemblies. (a) Applicability. (1) The aircraft, aircraft engines, ground flight simulators, or their parts, components, and subassemblies, are used as original or replacement equipment in the design, development, testing, evaluation, manufacture, repair, maintenance, rebuilding, modification, or conversion of aircraft; and (2) They are either: (i) Manufactured or operated pursuant to a certificate issued by the Administrator of the Federal Aviation Administration (FAA) under 49 U.S.C. 44704 or pursuant to the approval of the airworthiness authority in the country of exportation, if that approval is recognized by the FAA as an acceptable substitute for the FAA certificate; (ii) Covered by an application for such certificate, submitted to and accepted by the FAA, filed by an existing type and production certificate holder pursuant to 49 U.S.C. 44702 and implementing regulations (Federal Aviation Administration Regulations, title 14, Code of Federal Regulations); or (iii) Covered by an application for such approval or certificate which will be submitted in the future by an existing type and production certificate holder, pending the completion of design or other technical requirements stipulated by the FAA (applicable only to the quantities of parts, components, and subassemblies as are required to meet the stipulation). (b) Department of Defense or U.S. Coast Guard use. (c) Claim for admission free of duty. (d) Importer certification. (e) Documentation. (f) Post-entry claim. (g) Verification. [T.D. 02-31, 67 FR 39289, June 7, 2002] Subpart B—Caribbean Basin Initiative Source: Sections 10.191 through 10.197 issued by T.D. 84-237, 49 FR 47993, Dec. 7, 1984, unless otherwise noted. § 10.191 General. (a) Statutory authority. (b) Definitions Beneficiary country. See See (2) Eligible articles. (i) Textile and apparel articles which were not eligible articles for purposes of the CBI on January 1, 1994, as the CBI was in effect on that date. (ii) Footwear not designated on August 5, 1983, as eligible articles for the purpose of the Generalized System of Preferences under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467). (iii) Tuna, prepared or preserved in any manner, in airtight containers. (iv) Petroleum, or any product derived from petroleum, provided for in headings 2709 and 2710, HTSUS. (v) Watches and watch parts (including cases, bracelets and straps), of whatever type including, but not limited to, mechanical, quartz digital or quartz analog, if such watches or watch parts contain any material which is the product of any country with respect to which HTSUS column 2 rates of duty apply. (vi) Articles to which reduced rates of duty apply under § 10.198a. (vii) Sugars, sirups, and molasses, provided for in subheadings 1701.11.00 and 1701.12.00, HTSUS, to the extent that importation and duty-free treatment of such articles are limited by Additional U.S. Note 4, Chapter 17, HTSUS. (viii) Articles subject to the provisions of the subheadings of Subchapter III, from the beginning through 9903.85.21, Chapter 99, HTSUS, to the extent that such provisions have not been modified or terminated by the President pursuant to section 213(e)(5) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(e)(5)). (ix) Merchandise for which duty-free treatment under the CBI is suspended or withdrawn by the President pursuant to sections 213 (c)(2), (e)(1), or (f)(3) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703 (c)(2), (e)(1), or (f)(3)). (3) Wholly the growth, product, or manufacture of a beneficiary country. (4) Entered. [T.D. 84-237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988; T.D. 00-68, 65 FR 59657, Oct. 5, 2000; T.D. 01-17, 66 FR 9645, Feb. 9, 2001; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.192 Claim for exemption from duty under the CBI. A claim for an exemption from duty on the ground that the CBI applies shall be allowed by the Center director only if he is satisfied that the requirements set forth in this section and §§ 10.193 through 10.198b have been met. Duty-free treatment may be claimed at the time of filing the entry summary by placing the symbol “E” as a prefix to the HTSUS subheading number for each article for which such treatment is claimed on that document. [T.D. 84-237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 89-1, 53 FR 51252, Dec. 21, 1988; T.D. 94-47, 59 FR 25570, May 17, 1994; T.D. 00-68, 65 FR 59658, Oct. 5, 2000] § 10.193 Imported directly. To qualify for treatment under the CBI, an article shall be imported directly from a beneficiary country into the customs territory of the U.S. For purposes of § 10.191 through § 10.198b the words “imported directly” mean: (a) Direct shipment from any beneficiary country to the U.S. without passing through the territory of any non-beneficiary country; or (b) If the shipment is from any beneficiary country to the U.S. through the territory of any non-beneficiary country, the articles in the shipment do not enter into the commerce of any non-beneficiary country while en route to the U.S. and the invoices, bills of lading, and other shipping documents show the U.S. as the final destination; or (c) If the shipment is from any beneficiary country to the U.S. through the territory of any non-beneficiary country, and the invoices and other documents do not show the U.S. as the final destination, the articles in the shipment upon arrival in the U.S. are imported directly only if they: (1) Remained under the control of the customs authority of the intermediate country; (2) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commericial transaction between the importer and the producer or the latter's sales agent; and (3) Were not subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition. [T.D. 84-237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 00-68, 65 FR 59658, Oct. 5, 2000] § 10.194 Evidence of direct shipment. (a) Documents constituting evidence of direct shipment. (b) Waiver of evidence of direct shipment. § 10.195 Country of origin criteria. (a) Articles produced in a beneficiary country General. (2) Combining, packaging, and diluting operations. (i) For purposes of this section, simple combining or packaging operations and mere dilution include, but are not limited to, the following processes: (A) The addition of batteries to devices; (B) Fitting together a small number of components by bolting, glueing, soldering etc.; (C) Blending foreign and beneficiary country tobacco; (D) The addition of substances such as anticaking agents, preservatives, wetting agents, etc.; (E) Repacking or packaging components together; (F) Reconstituting orange juice by adding water to orange juice concentrate; and (G) Diluting chemicals with inert ingredients to bring them to standard degrees of strength. (ii) For purposes of this section, simple combining or packaging operations and mere dilution shall not be taken to include processes such as the following: (A) The assembly of a large number of discrete components onto a printed circuit board; (B) The mixing together of two bulk medicinal substances followed by the packaging of the mixed product into individual doses for retail sale; (C) The addition of water or another substance to a chemical compound under pressure which results in a reaction creating a new chemical compound; and (D) A simple combining or packaging operation or mere dilution coupled with any other type of processing such as testing or fabrication ( e.g., The fact that an article or material has undergone more than a simple combining or packaging operation or mere dilution is not necessarily dispositive of the question of whether that processing constitutes a substantial transformation for purposes of determining the country of origin of the article or material. (b) Commonwealth of Puerto Rico, U.S. Virgin Islands, and former beneficiary countries General. (2) Manufacture in the Commonwealth of Puerto Rico after final exportation. (i) The article entered in the warehouse in the Commonwealth of Puerto Rico was grown, produced, or manufactured in a beneficiary country within the meaning of paragraph (a) of this section and was imported directly from a beneficiary country within the meaning of § 10.193; and (ii) At the time of its withdrawal from the warehouse, the product of the processing or manufacturing in the Commonwealth of Puerto Rico meets the 35 percent value-content requirement prescribed in paragraph (a) of this section. (c) Materials produced in the U.S. (d) Textile components cut to shape in the U.S. (e) Articles wholly grown, produced, or manufactured in a beneficiary country. (f) Country of origin marking. [T.D. 84-237, 49 FR 47993, Dec. 7, 1984; 49 FR 49575, Dec. 20, 1984, as amended by T.D. 95-69, 60 FR 46197, Sept. 5, 1995; T.D. 95-69, 60 FR 55995, Nov. 6, 1996; T.D. 00-68, 65 FR 59658, Oct. 5, 2000; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.196 Cost or value of materials produced in a beneficiary country or countries. (a) “Materials produced in a beneficiary country or countries” defined. (1) Wholly the growth, product, or manufacture of a beneficiary country or two or more beneficiary countries; or (2) Subject to the limitations set forth in § 10.195(a), substantially transformed in any beneficiary country or two or more beneficiary countries into a new or different article of commerce which is then used in any beneficiary country in the production or manufacture of a new or different article which is imported directly into the U.S. Example 1. A raw, perishable skin of an animal grown in one beneficiary country is sent to another beneficiary country where it is tanned to create nonperishable “crust leather”. The tanned product is then imported directly into the U.S. Because the material of which the imported article is composed is wholly the growth, product, or manufacture of one of more beneficiary countries, the entire cost or value of that material may be counted toward the 35 percent value requirement set forth in § 10.195. Example 2. A raw, perishable skin of an animal grown in a non-beneficiary country is sent to a beneficiary country where it is tanned to create nonperishable “crust leather”. The tanned skin is then imported directly into the U.S. Although the tanned skin represents a new or different article of commerce produced in a beneficiary country within the meaning of § 10.195(a), the cost or value of the raw skin may not be counted toward the 35 percent value requirement because (1) the tanned material of which the imported article is composed is not wholly the growth, product, or manufacture of a beneficiary country and (2) the tanning operation creates the imported article itself rather than an intermediate article which is then used in the beneficiary country in the production or manufacture of an article imported into the U.S. The tanned skin would be eligible for duty-free treatment only if the direct costs attributable to the tanning operation represent at least 35 percent of the appraised value of the imported article. Example 3. A raw, perishable skin of an animal grown in a non-beneficiary country is sent to a beneficiary country where it is tanned to create nonperishable “crust leather”. The tanned material is then cut, sewn and assembled with a metal buckle imported from a non-beneficiary country to create a finished belt which is imported directly into the U.S. Because the operations performed in the beneficiary country involved both the substantial transformation of the raw skin into a new or different article and the use of that intermediate article in the production or manufacture of a new or different article imported into the U.S., the cost or value of the tanned material used to make the imported article may be counted toward the 35 percent value requirement. The cost or value of the metal buckle imported into the beneficiary country may not be counted toward the 35 percent value requirement because the buckle was not substantially transformed in the beneficiary country into a new or different article prior to its incorporation in the finished belt. Example 4. A raw, perishable skin of an animal grown in the U.S. Virgin Islands is sent to a beneficiary country where it is tanned to create nonperishable “crust leather”, which is then imported directly into the U.S. The tanned skin represents a new or different article of commerce produced in a beneficiary country within the meaning of § 10.195(a), and under § 10.195(b), the raw skin from which the tanned product was made is considered to have been grown in a beneficiary country for the purpose of applying the 35 percent value requirement. The tanned material of which the imported article is composed is considered to be wholly the growth, product, or manufacture of one or more beneficiary countries with the result that the entire cost or value of that material may be counted toward the 35 percent value requirement. (b) Questionable origin. (c) Determination of cost or value of materials produced in a beneficiary country. (i) The manufacturer's actual cost for the materials; (ii) When not included in the manufacturer's actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant; (iii) The actual cost of waste or spoilage (material list), less the value of recoverable scrap; and (iv) Taxes and/or duties imposed on the materials by any beneficiary country, provided they are not remitted upon exportation. (2) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by computing the sum of: (i) All expenses incurred in the growth, production, or manufacture of the material, including general expenses; (ii) An amount for profit; and (iii) Freight, insurance, packing, and all other costs incurred in transporting the material to the manufacturer's plant. If the pertinent information needed to compute the cost or value of a material is not available, the appraising officer may ascertain or estimate the value thereof using all reasonable ways and means at his disposal. § 10.197 Direct costs of processing operations performed in a beneficiary country or countries. (a) Items included in the direct costs of processing operations. (1) All actual labor costs involved in the growth, production, manufacture or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; (2) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise; (3) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific merchandise and; (4) Costs of inspecting and testing the specific merchandise. (b) Items not included in the direct costs of processing operations. (1) Profit; and (2) General expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. [T.D. 84-237, 49 FR 47993, Dec. 7, 1984; 49 FR 49575, Dec. 20, 1984] § 10.198 Evidence of country of origin. (a) Shipments covered by a formal entry Articles not wholly the growth, product, or manufacture of a beneficiary country Declaration. CBI Declaration I, ____________________________, (name), hereby declare that the articles described below (a) were produced or manufactured in ________________ (country) by means of processing operations performed in that country as set forth below and were also subjected to processing operations in the other beneficiary country or countries (including the Commonwealth of Puerto Rico and the U.S. Virgin Islands) as set forth below and (b) incorporate materials produced in the country named above or in any other beneficiary country or countries (including the Commonwealth of Puerto Rico and the U.S. Virgin Islands) or in the customs territory of the United States (other than the Commonwealth of Puerto Rico) as set forth below: Number and date of invoices Description of articles and quantity Processing operations performed on articles Material produced in a beneficiary country or in the U.S. Description of processing operations and country of processing Direct costs of processing operations Description of material, production process, and country of production Cost or value of material Date Address Signature Title (ii) Retention of records and submission of declaration. (iii) Value added after final exportation. (2) Merchandise wholly the growth, product, or manufacture of a beneficiary country. (b) Shipments covered by an informal entry. (c) Verification of documentation. [T.D. 94-47, 59 FR 25570, May 17, 1994] § 10.198a Duty reduction for certain leather-related articles. Except as otherwise provided in § 10.233, reduced rates of duty as proclaimed by the President will apply to handbags, luggage, flat goods, work gloves, and leather wearing apparel that were not designated on August 5, 1983, as eligible articles for purposes of the Generalized System of Preferences under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467), provided that the article in question at the time it is entered: (a) Was grown, produced, or manufactured in a beneficiary country within the meaning of § 10.195; (b) Meets the 35 percent value-content requirement prescribed in § 10.195; and (c) Was imported directly from a beneficiary country within the meaning of § 10.193. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000] § 10.198b Products of Puerto Rico processed in a beneficiary country. Except in the case of any article described in § 10.191(b)(2)(i) through (vi), the duty-free treatment provided for under the CBI will apply to an article that is the growth, product, or manufacture of the Commonwealth of Puerto Rico and that is by any means advanced in value or improved in condition in a beneficiary country, provided that: (a) If any materials are added to the article in the beneficiary country, those materials consist only of materials that are a product of a beneficiary country or the United States; and (b) The article is imported directly from the beneficiary country into the customs territory of the United States within the meaning of § 10.193. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000] § 10.199 Duty-free entry for certain beverages produced in Canada from Caribbean rum. (a) General. (1) Is the growth, product, or manufacture either of a beneficiary country or of the U.S. Virgin Islands; (2) Was imported directly into the territory of Canada from a beneficiary country or from the U.S. Virgin Islands; and (3) Accounts for at least 90 percent of the alcoholic content by volume of the spirituous beverage. (b) Claim for exemption from duty under CBI. (1) The rum used to produce the beverage is the growth, product or manufacture either of a beneficiary country or of the U.S. Virgin Islands; (2) The rum was shipped directly from a beneficiary country or from the U.S. Virgin Islands to Canada; (3) The beverage was produced in Canada; (4) The rum accounts for at least 90% of the alcohol content of the beverage; and (5) The beverage was shipped directly from Canada to the United States. (c) Imported directly. (1) “Imported directly” into the customs territory of the United States from Canada means: (i) Direct shipment from the territory of Canada to the U.S. without passing through the territory of any other country; or (ii) If the shipment is from the territory of Canada to the U.S. through the territory of any other country, the spirituous beverages do not enter into the commerce of any other country while en route to the U.S.; or (iii) If the shipment is from the territory of Canada to the U.S. through the territory of another country, and the invoices and other documents do not show the U.S. as the final destination, the spirituous beverages in the shipment are imported directly only if they: (A) Remained under the control of the customs authority of the intermediate country; (B) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the latter's sales agent; and (C) Were not subjected to operations other than loading and unloading, and other activities necessary to preserve the products in good condition. (2) “Imported directly” from a beneficiary country or from the U.S. Virgin Islands into the territory of Canada means: (i) Direct shipment from a beneficiary country or from the U.S. Virgin Islands into the territory of Canada without passing through the territory of any non-beneficiary country; or (ii) If the shipment is from a beneficiary country or from the U.S. Virgin Islands into the territory of Canada through the territory of any non-beneficiary country, the rum does not enter into the commerce of any non-beneficiary country while en route to Canada; or (iii) If the shipment is from a beneficiary country or from the U.S. Virgin Islands into the territory of Canada through the territory of any non-beneficiary country, the rum in the shipment is imported directly into the territory of Canada only if it: (A) Remained under the control of the customs authority of the intermediate country; (B) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail; and (C) Was not subjected to operations in the intermediate country other than loading and unloading, and other activities necessary to preserve the product in good condition. (d) Evidence of direct shipment Spirituous beverages imported from Canada. (2) Rum imported into Canada from beneficiary country or U.S. Virgin Islands. (e) Origin of rum used in production of the spirituous beverage Origin criteria. (2) Evidence of origin of rum Declaration. (ii) Records supporting declaration. (f) Canadian processor declaration; supporting documentation Canadian processor declaration. I, ________ declare that the spirituous beverages here specified are the products that were produced by me (us), as described below, with the use of rum that was received by me (us); that the rum used in producing the beverages was received by me (us) on ________ (date), from ________ (name and address of owner or exporter in the beneficiary country or in the U.S. Virgin Islands, as applicable); and that such rum accounts for at least 90 percent of the alcoholic content by volume, as shown below, of each spirituous beverage so produced. Marks and numbers Description of products and of processing Alcoholic content of products; alcoholic content (%) attributable to rum 1 1 e.g., Date Address Signature Title (2) Availability of supporting documents. (i) The receipt of the rum by the Canadian processor, including the date of receipt and the name and address of the party from whom the rum was received (the owner or exporter in the beneficiary country or the U.S. Virgin Islands); and (ii) For each lot of beverage produced and included in the declaration, the specific identification of the production lot(s) involved; the quantity of qualifying rum that is used in producing the finished beverage, including a description of the processing and of the finished products; the alcoholic content by volume of the finished beverage; and the alcoholic content by volume of the finished beverage, expressed as a percentage, that is attributable to the qualifying rum. (g) Importer system for review of necessary recordkeeping. (1) The origin of the rum; (2) The direct shipment of the rum from a beneficiary country or from the U.S. Virgin Islands to Canada; (3) The alcohol content of the finished beverage imported from Canada; and (4) The direct shipment of the finished beverage from Canada to the United States. (h) Submission of documents to Customs. [T.D. 02-59, 67 FR 62882, Oct. 9, 2002] Subpart C—Andean Trade Preference Source: Sections 10.201 through 10.208 appear at T.D. 98-76, 63 FR 51292, Sept. 25, 1998, unless otherwise noted. § 10.201 Applicability. Title II of Pub. L. 102-182 (105 Stat. 1233), entitled the Andean Trade Preference Act (ATPA) and codified at 19 U.S.C. 3201 through 3206, authorizes the President to proclaim duty-free treatment for all eligible articles from any beneficiary country and to designate countries as beneficiary countries. The provisions of §§ 10.202 through 10.207 set forth the legal requirements and procedures that apply for purposes of obtaining that duty-free treatment for certain articles from a beneficiary country which are identified for purposes of that treatment in General Note 11, Harmonized Tariff Schedule of the United States (HTSUS), and in the “Special” rate of duty column of the HTSUS. Provisions regarding preferential treatment of apparel and other textile articles under the ATPA are contained in §§ 10.241 through 10.248, and provisions regarding preferential treatment of tuna and certain other non-textile articles under the ATPA are contained in §§ 10.251 through 10.257. [T.D. 03-16, 68 FR 14486, Mar. 25, 2003; 68 FR 67338, Dec. 1, 2003] § 10.202 Definitions. The following definitions apply for purposes of §§ 10.201 through 10.207: (a) Beneficiary country. (b) Eligible articles. (1) Textiles and apparel articles which were not eligible articles for purposes of the ATPA on January 1, 1994, as the ATPA was in effect on that date, except as otherwise provided in §§ 10.241 through 10.248; (2) Rum and tafia classified in subheading 2208.40, Harmonized Tariff Schedule of the United States; (3) Sugars, syrups, and sugar-containing products subject to over-quota duty rates under applicable tariff-rate quotas; or (4) Tuna prepared or preserved in any manner in airtight containers, except as otherwise provided in §§ 10.251 through 10.257. (c) Entered. (d) Wholly the growth, product, or manufacture of a beneficiary country. [T.D. 98-76, 63 FR 51292, Sept. 25, 1998, as amended by T.D. 03-16, 68 FR 14486, Mar. 25, 2003; 68 FR 67338, Dec. 1, 2003] § 10.203 Eligibility criteria in general. An article classifiable under a subheading of the Harmonized Tariff Schedule of the United States for which a rate of duty of “Free” appears in the “Special” subcolumn followed by the symbol “J” or “J*” in parentheses is eligible for duty-free treatment, and will be accorded such treatment, if each of the following requirements is met: (a) Imported directly. (b) Country of origin criteria. (c) Value content requirement. (d) Filing of claim and submission of supporting documentation. § 10.204 Imported directly. In order to be eligible for duty-free treatment under the ATPA, an article shall be imported directly from a beneficiary country into the customs territory of the United States. For purposes of this requirement, the words “imported directly” mean: (a) Direct shipment from any beneficiary country to the United States without passing through the territory of any non-beneficiary country; or (b) If shipment from any beneficiary country to the United States was through the territory of a non-beneficiary country, the articles in the shipment did not enter into the commerce of the non-beneficiary country while en route to the United States, and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (c) If shipment from any beneficiary country to the United States was through the territory of a non-beneficiary country and the invoices and other documents do not show the United States as the final destination, then the articles in the shipment, upon arrival in the United States, are imported directly only if they: (1) Remained under the control of the customs authority in the intermediate country; (2) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the articles are imported into the United States as a result of the original commercial transaction between the importer and the producer or the latter's sales agent; and (3) Were not subjected to operations in the intermediate country other than loading and unloading, and other activities necessary to preserve the articles in good condition. § 10.205 Country of origin criteria. (a) General. (1) Wholly the growth, product, or manufacture of a beneficiary country; or (2) A new or different article of commerce which has been grown, produced, or manufactured in a beneficiary country. (b) Exceptions. § 10.206 Value content requirement. (a) General. (b) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI beneficiary countries. (c) Materials produced in the United States. (d) Cost or value of materials “Materials produced in a beneficiary country or countries” defined. materials produced in a beneficiary country or countries (i) Wholly the growth, product, or manufacture of a beneficiary country or two or more beneficiary countries; or (ii) Substantially transformed in any beneficiary country or two or more beneficiary countries into a new or different article of commerce which is then used in any beneficiary country as defined in § 10.202(a) in the production or manufacture of a new or different article which is imported directly into the United States. For purposes of this paragraph (d)(1)(ii), no material shall be considered to be substantially transformed into a new or different article of commerce by virtue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. The examples set forth in § 10.196(a) of this part, and the principles and examples set forth in § 10.195(a)(2) of this part, shall apply for purposes of the corresponding context under paragraph (d)(1) of this section. (2) Questionable origin. (3) Determination of cost or value of materials. (A) The manufacturer's actual cost for the materials; (B) When not included in the manufacturer's actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant; (C) The actual cost of waste or spoilage, less the value of recoverable scrap; and (D) Taxes and/or duties imposed on the materials by any beneficiary country or by the United States, provided they are not remitted upon exportation. (ii) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by computing the sum of: (A) All expenses incurred in the growth, production, or manufacture of the material, including general expenses; (B) An amount for profit; and (C) Freight, insurance, packing, and all other costs incurred in transporting the material to the manufacturer's plant. (iii) If the pertinent information needed to compute the cost or value of a material is not available, the appraising officer may ascertain or estimate the value thereof using all reasonable ways and means at his disposal. (e) Direct costs of processing operations Items included. direct costs of processing operations (i) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; (ii) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise; (iii) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific merchandise; and (iv) Costs of inspecting and testing the specific merchandise. (2) Items not included. (i) Profit; and (ii) General expenses of doing business which either are not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. (f) Articles wholly the growth, product, or manufacture of a beneficiary country. § 10.207 Procedures for filing duty-free treatment claim and submitting supporting documentation. (a) Filing claim for duty-free treatment. (b) Shipments covered by a formal entry Articles not wholly the growth, product, or manufacture of a beneficiary country Declaration. ATPA DECLARATION I, ____________ (name), hereby declare that the articles described below (a) were produced or manufactured in ____________ (country) by means of processing operations performed in that country as set forth below and were also subjected to processing operations in the other beneficiary country or countries (including the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country) as set forth below and (b) incorporate materials produced in the country named above or in any other beneficiary country or countries (including the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country) or in the customs territory of the United States (other than the Commonwealth of Puerto Rico) as set forth below: Number and date of invoices Description of articles and quantity Processing operations performed on articles Material produced in a beneficiary country or in the U.S. Description of processing operations and country of processing Direct costs of processing operations Description of material, production process, and country of production Cost or value of material Date Address Signature Title (ii) Retention of records and submission of declaration. (iii) Value added after final exportation. (2) Articles wholly the growth, product, or manufacture of a beneficiary country. (c) Shipments covered by an informal entry. (d) Evidence of direct importation Submission. (2) Waiver. (e) Verification of documentation. Subpart D—Textile and Apparel Articles Under the African Growth and Opportunity Act Source: CBP Dec. 14-07, 79 FR 30392, May 27, 2014, unless otherwise noted. § 10.211 Applicability. Title I of Public Law 106-200 (114 Stat. 251), entitled the African Growth and Opportunity Act (AGOA), authorizes the President to extend certain trade benefits to designated countries in sub-Saharan Africa. Section 112 of the AGOA, codified at 19 U.S.C. 3721, provides for the preferential treatment of certain textile and apparel articles from beneficiary countries. The provisions of §§ 10.211-10.217 of this part set forth the legal requirements and procedures that apply for purposes of extending preferential treatment pursuant to section 112. § 10.212 Definitions. When used in §§ 10.211 through 10.217, the following terms have the meanings indicated: (a) Apparel articles. (b) Beneficiary country. Federal Register, See (c) Cut in one or more beneficiary countries. (d) Ethnic printed fabrics. (1) Containing a selvedge on both edges, having a width of less than 50 inches, classifiable under subheading 5208.52.30 or 5208.52.40 of the HTSUS; (2) Of the type that contains designs, symbols, and other characteristics of African prints: (i) Normally produced for and sold on the indigenous African market; and (ii) Normally sold in Africa by the piece as opposed to being tailored into garments before being sold in indigenous African markets; (3) Printed, including waxed, in one or more eligible beneficiary countries; and (4) Formed in the United States, from yarns formed in the United States, or from fabric formed in one or more beneficiary countries from yarn originating in either the United States or one or more beneficiary countries; (e) Foreign origin. (f) Former beneficiary country. (g) HTSUS. (h) Knit-to-shape articles. (i) Knit-to-shape components. (j) Lesser developed beneficiary country. See (k) Major parts. (l) USMCA. (m) Originating. (n) Preferential treatment. (o) Self-start edge. (p) Sewing thread. (q) Sewn or otherwise assembled in one or more beneficiary countries. (r) Wholly assembled in. (s) Wholly formed fabrics. see (t) Wholly formed on seamless knitting machines. (u) Wholly formed yarns. see [CBP Dec. 14-07, 79 FR 30392, May 27, 2014, as amended by CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.213 Articles eligible for preferential treatment. (a) General. (1) Apparel articles sewn or otherwise assembled in one or more beneficiary countries from fabrics wholly formed and cut, or from components knit-to shape, in the United States, from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under subheading 9802.00.80 of the HTSUS; (2) Apparel articles sewn or otherwise assembled in one or more beneficiary countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States, from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under Chapter 61 or 62 of the HTSUS, if, after that assembly, the articles would have qualified for entry under subheading 9802.00.80 of the HTSUS but for the fact that the articles were embroidered or subjected to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing, screen printing, or other similar processes in a beneficiary country; (3) Apparel articles sewn or otherwise assembled in one or more beneficiary countries with sewing thread formed in the United States from fabrics wholly formed in the United States and cut in one or more beneficiary countries from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if those fabrics are classified under heading 5602 or 5603 of the HTSUS and are wholly formed in the United States); (4) Apparel articles wholly assembled in one or more beneficiary countries from fabric wholly formed in one or more beneficiary countries from yarns originating in the United States or one or more beneficiary countries or former beneficiary countries, or both (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed in one or more beneficiary countries), or from components knit-to-shape in one or more beneficiary countries from yarns originating in the United States or one or more beneficiary countries or former beneficiary countries, or both, or apparel articles wholly formed on seamless knitting machines in a beneficiary country from yarns originating in the United States or one or more beneficiary countries or former beneficiary countries, or both, whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (a)(1), (2) or (3) of this section (unless the apparel articles are made exclusively from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (a)(1), (2), or (3) of this section), subject to the applicable quantitative limit published in the Federal Register (5) Apparel articles wholly assembled, or knit to shape and wholly assembled, or both, in one or more lesser developed beneficiary countries regardless of the country of origin of the fabric or the yarn used to make the articles, subject to the applicable quantitative limit published in the Federal Register (6) Sweaters, in chief weight of cashmere, knit-to-shape in one or more beneficiary countries and classifiable under subheading 6110.12 of the HTSUS; (7) Sweaters, containing 50 percent or more by weight of wool measuring 21.5 microns in diameter or finer, knit-to-shape in one or more beneficiary countries; (8) Apparel articles, other than brassieres classifiable under subheading 6212.10, HTSUS, that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more beneficiary countries, provided that the apparel articles would be considered an originating good under General Note 11 HTSUS, without regard to the source of the fabric or yarn of which the articles are made, if the apparel articles had been imported directly from Canada or Mexico; (9) Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more beneficiary countries from fabrics or yarn that the President or his designee has designated in the Federal Register (10) A handloomed, handmade, or folklore article or an ethnic printed fabric of a beneficiary country or countries that is certified as a handloomed, handmade, or folklore article or an ethnic printed fabric by the competent authority of the beneficiary country or countries, provided that the President or his designee has determined that the article in question will be treated as being a handloomed, handmade, or folklore article or an ethnic printed fabric; (11) Apparel articles sewn or otherwise assembled in one or more beneficiary countries with sewing thread formed in the United States: (i) From components cut in the United States and one or more beneficiary countries or former beneficiary countries from fabric wholly formed in the United States from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS); (ii) From components knit-to-shape in the United States and one or more beneficiary countries or former beneficiary countries from yarns wholly formed in the United States; or (iii) From any combination of two or more of the cutting or knitting-to-shape operations described in paragraph (a)(11)(i) or paragraph (a)(11)(ii) of this section; and (12) Textile and textile articles classifiable under Chapters 50 through 60 or Chapter 63 of the HTSUS that are products of a lesser developed beneficiary country and are wholly formed in one or more such countries from fibers, yarns, fabrics, fabric components, or components knit-to-shape that are the product of one or more such countries. (b) Dyeing, printing, finishing and other operations Dyeing, printing and finishing operations. (2) Other operations. (c) Special rules for certain component materials General. (i) Findings and trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “findings and trimmings” include, but are not limited to, hooks and eyes, snaps, buttons, “bow buds,” decorative lace trim, elastic strips (but only if they are each less than 1 inch in width and are used in the production of brassieres), zippers (including zipper tapes), labels, and sewing thread except in the case of an article described in paragraph (a)(3) of this section; (ii) Interlinings of foreign origin, if the value of those interlinings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “interlinings” include only a chest type plate, a “hymo” piece, or “sleeve header,” of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments; (iii) Any combination of findings and trimmings of foreign origin and interlinings of foreign origin, if the total value of those findings and trimmings and interlinings does not exceed 25 percent of the cost of the components of the assembled article; (iv) Fibers or yarns not wholly formed in the United States or one or more beneficiary countries or former beneficiary countries if the total weight of all those fibers and yarns is not more than 10 percent of the total weight of the article; or (v) Any collars or cuffs (cut or knit-to-shape), drawstrings, shoulder pads or other padding, waistbands, belt attached to the article, straps containing elastic, or elbow patches that do not meet the requirements set forth in paragraph (a) of this section, regardless of the country of origin of the applicable component referred to in this paragraph. (2) “Cost” and “value” defined. (i) The ex-factory price of the components, findings and trimmings or interlinings as set out in the invoice or other commercial documents, or, if the price is other than ex-factory, the price as set out in the invoice or other commercial documents adjusted to arrive at an ex-factory price; or (ii) If the price cannot be determined under paragraph (c)(2)(i) of this section or if that price is unreasonable, all reasonable expenses incurred in the growth, production, manufacture or other processing of the components, findings and trimmings, or interlinings, including the cost or value of materials and general expenses, plus a reasonable amount for profit. (3) Treatment of fibers and yarns as findings or trimmings. (d) Imported directly defined. (1) Direct shipment from any beneficiary country to the United States without passing through the territory of any non-beneficiary country; (2) If the shipment is from any beneficiary country to the United States through the territory of any non-beneficiary country, the articles in the shipment do not enter into the commerce of any non-beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If the shipment is from any beneficiary country to the United States through the territory of any non-beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon arrival in the United States are imported directly only if they: (i) Remained under the control of the customs authority of the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the producer's sales agent; and (iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition. [CBP Dec. 14-07, 79 FR 30392, May 27, 2014, as amended by CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.214 Certificate of Origin. (a) General. (1) The person's reasonable reliance on the producer's written representation that the article qualifies for preferential treatment; or (2) A completed and signed Certificate of Origin for the article voluntarily provided to the person by the producer. (b) Form of Certificate. African Growth and Opportunity Act Textile Certificate of Origin 1. Exporter Name and Address: 3. Importer Name and Address: 2. Producer Name and Address: 4. Preference Group: 5. Description of Article: Group Each description below is only a summary of the cited CFR provision. 19 CFR 1-A Apparel assembled from U.S. fabrics and/or knit-to-shape components, from U.S. yarns. All fabric must be cut in the United States 10.213(a)(1). 2-B Apparel assembled from U.S. fabrics and/or knit-to-shape components, from U.S. yarns. All fabric must be cut in the United States. After assembly, the apparel is embroidered or subject to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing, screen printing, or other similar processes 10.213(a)(2). 3-C Apparel assembled from U.S. fabrics and/or U.S. knit-to-shape components and/or U.S. and and 10.213(a)(3) or 10.213(a)(11). 4-D Apparel assembled from beneficiary country fabrics and/or knit-to-shape components, from yarns originating in the United States and/or one or more beneficiary countries or former beneficiary countries 10.213(a)(4). 5-E Apparel assembled or knit-to-shape and assembled, or both, in one or more lesser developed beneficiary countries regardless of the country of origin of the fabric or the yarn used to make such articles 10.213(a)(5). 6-F Knit-to-shape sweaters in chief weight of cashmere 10.213(a)(6). 7-G Knit-to-shape sweaters 50 percent or more by weight of wool measuring 21.5 microns in diameter or finer 10.213(a)(7). 8-H Apparel assembled from fabrics or yarns considered in short supply in the USMCA, or designated as not available in commercial quantities in the United States 10.213(a)(8) or 10.213(a)(9). 9-I Handloomed fabrics, handmade articles made of handloomed fabrics, or textile folklore articles—as defined in bilateral consultations; ethnic printed fabric 10.213(a)(10). 0-J Textile articles classifiable in Chapters 50 through 60 or Chapter 63, HTSUS, that are products of a lesser developed beneficiary country and are wholly formed in one or more such countries from fibers, yarns, fabrics, fabric components, or components knit-to-shape that are the product of one or more such countries 10.213(a)(12). 6. U.S./African Fabric Producer Name and Address: 7. U.S./African Yarn Producer Name and Address: 8. U.S. Thread Producer Name and Address: 9. Handloomed, Handmade, or Folklore Article or Ethnic Printed Fabric: 10. Name of Short Supply or Designated Fabric or Yarn: I certify that the information on this document is complete and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document. I agree to maintain, and present upon request, documentation necessary to support this certificate. 11. Authorized Signature: 12. Company: 13. Name: (Print or Type) 14. Title: 15. Date: (DD/MM/YY) 16. Blanket Period 17. Telephone: (c) Preparation of Certificate. (1) Blocks 1 through 5 pertain only to the final article exported to the United States for which preferential treatment may be claimed; (2) Block 1 should state the legal name and address (including country) of the exporter; (3) Block 2 should state the legal name and address (including country) of the producer. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers. If this information is confidential, it is acceptable to state “available to CBP upon request” in block 2. If the producer and the exporter are the same, state “same” in block 2; (4) Block 3 should state the legal name and address (including country) of the importer; (5) In block 4, insert the number and/or letter that identifies the preference group which applies to the article according to the description contained in the CFR provision cited on the Certificate for that group; (6) Block 5 should provide a full description of each article. The description should be sufficient to relate it to the invoice description and to the description of the article in the international Harmonized System. Include the invoice number as shown on the commercial invoice or, if the invoice number is not known, include another unique reference number such as the shipping order number; (7) Blocks 6 through 10 must be completed only when the block in question calls for information that is relevant to the preference group identified in block 4; (8) Block 6 should state the legal name and address (including country) of the fabric producer; (9) Block 7 should state the legal name and address (including country) of the yarn producer; (10) Block 8 should state the legal name and address (including country) of the thread producer; (11) Block 9 should state the name of the folklore article or should state that the article is handloomed, handmade or an ethnic printed fabric; (12) Block 10, should be completed only when preference group identifier “8” and/or “H” is inserted in block 4 and should state the name of the fabric or yarn that is in short supply in the USMCA or that has been designated as not available in commercial quantities in the United States; (13) Block 11 must contain the signature of the exporter or producer or of the exporter's or producer's authorized agent having knowledge of the relevant facts; (14) Block 15 should reflect the date on which the Certificate was completed and signed; (15) Block 16 should be completed if the Certificate is intended to cover multiple shipments of identical articles as described in block 5 that are imported into the United States during a specified period of up to one year ( see (16) The telephone and facsimile numbers included in block 17 should be those at which the person who signed the Certificate may be contacted; and (17) The Certificate may be printed and reproduced locally. If more space is needed to complete the Certificate, attach a continuation sheet. [CBP Dec. 14-07, 79 FR 30392, May 27, 2014, as amended by CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.215 Filing of claim for preferential treatment. (a) Declaration. (b) Corrected declaration. § 10.216 Maintenance of records and submission of Certificate by importer. (a) Maintenance of records. (b) Submission of Certificate. (1) Must be in writing or must be transmitted electronically pursuant to any electronic data interchange system authorized by CBP for that purpose; (2) Must be signed by the exporter or producer or by the exporter's or producer's authorized agent having knowledge of the relevant facts; (3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to CBP upon request a written English translation of the Certificate; and (4) May be applicable to: (i) A single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (ii) Multiple importations of identical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph and § 10.214(c)(15), “identical articles” means articles that are the same in all material respects, including physical characteristics, quality, and reputation. (c) Correction and nonacceptance of Certificate. (d) Certificate not required General. (i) An importation of an article for which the Center director has in writing waived the requirement for a Certificate of Origin because the Center director is otherwise satisfied that the article qualifies for preferential treatment; (ii) A non-commercial importation of an article; or (iii) A commercial importation of an article whose value does not exceed US $2,500, provided that, unless waived by the Center director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement: I hereby certify that the article covered by this shipment qualifies for preferential treatment under the AGOA. Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent Name Title Address Signature and Date (2) Exception. § 10.217 Verification and justification of claim for preferential treatment. (a) Verification by CBP. (1) All records required to be made, kept, and made available to CBP by the importer or any other person under part 163 of this chapter; (2) Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and (3) Evidence to document the use of U.S. materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents. (b) Importer requirements. (1) Must have records that explain how the importer came to the conclusion that the textile or apparel article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it is specifically described in one of the provisions under § 10.213(a). If the importer is claiming that the article incorporates fabric or yarn that originated or was wholly formed in the United States, the importer must have records that identify the U.S. producer of the fabric or yarn. A properly completed Certificate of Origin in the form set forth in § 10.214(b) is a record that would serve these purposes; (2) Must establish and implement internal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in paragraph (b)(1) of this section; (3) Must have shipping papers that show how the article moved from the beneficiary country to the United States. If the imported article was shipped through a country other than a beneficiary country and the invoices and other documents from the beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.213(d)(3)(i) through (iii) were met; and (4) Must be prepared to explain, upon request from CBP, how the records and internal controls referred to in paragraphs (b)(1) through (3) of this section justify the importer's claim for preferential treatment. Subpart E—United States-Caribbean Basin Trade Partnership Act Textile and Apparel Articles Under the United States-Caribbean Basin Trade Partnership Act Source: T.D. 00-68, 65 FR 59658, Oct. 5, 2000, unless otherwise noted. § 10.221 Applicability. Title II of Public Law 106-200 (114 Stat. 251), entitled the United States-Caribbean Basin Trade Partnership Act (CBTPA), amended section 213(b) of the Caribbean Basin Economic Recovery Act (the CBERA, 19 U.S.C. 2701-2707) to authorize the President to extend additional trade benefits to countries that have been designated as beneficiary countries under the CBERA. Section 213(b)(2) of the CBERA (19 U.S.C. 2703(b)(2)) provides for the preferential treatment of certain textile and apparel articles from CBERA beneficiary countries. The provisions of §§ 10.221-10.227 of this part set forth the legal requirements and procedures that apply for purposes of obtaining preferential treatment pursuant to CBERA section 213(b)(2). [T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000] § 10.222 Definitions. When used in §§ 10.221 through 10.228, the following terms have the meanings indicated: Apparel articles. Assembled in one or more CBTPA beneficiary countries. CBERA. CBTPA beneficiary country. Federal Register, Cut in one or more CBTPA beneficiary countries. Foreign. HTSUS. Knit-to-shape. Luggage. Made in one or more CBTPA beneficiary countries. Major parts. Preferential treatment. USMCA. Wholly assembled in one or more CBTPA beneficiary countries. Wholly formed. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000, as amended by T.D. 01-74, 66 FR 50537, Oct. 4, 2001; T.D. 03-12, 68 FR 13831, Mar. 21, 2003; CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.223 Articles eligible for preferential treatment. (a) General. (1) Apparel articles sewn or otherwise assembled in one or more CBTPA beneficiary countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States, from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under subheading 9802.00.80 of the HTSUS, and provided that any other processing involving the article conforms to the rules set forth in paragraph (b) of this section; (2) Apparel articles sewn or otherwise assembled in one or more CBTPA beneficiary countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States, from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under Chapter 61 or 62 of the HTSUS, if, after that assembly, the articles would have qualified for entry under subheading 9802.00.80 of the HTSUS but for the fact that the articles were embroidered or subjected to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing, screen printing, or other similar processes in a CBTPA beneficiary country, and provided that any other processing involving the article conforms to the rules set forth in paragraph (b) of this section; (3) Apparel articles sewn or otherwise assembled in one or more CBTPA beneficiary countries with thread formed in the United States from fabrics wholly formed in the United States and cut in one or more CBTPA beneficiary countries from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed in the United States), and provided that any other processing involving the article conforms to the rules set forth in paragraph (b) of this section; (4) Apparel articles (other than socks provided for in heading 6115 of the HTSUS) knit to shape in a CBTPA beneficiary country from yarns wholly formed in the United States, and knitted or crocheted apparel articles (other than non-underwear t-shirts classifiable under subheadings 6109.10.00 and 6109.90.10 of the HTSUS and described in paragraph (a)(5) of this section) cut and wholly assembled in one or more CBTPA beneficiary countries from fabrics formed in one or more CBTPA beneficiary countries or in one or more CBTPA beneficiary countries and the United States from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more CBTPA beneficiary countries); (5) Non-underwear t-shirts, classifiable under subheadings 6109.10.00 and 6109.90.10 of the HTSUS, made in one or more CBTPA beneficiary countries from fabric formed in one or more CBTPA beneficiary countries from yarns wholly formed in the United States; (6) Brassieres classifiable under subheading 6212.10 of the HTSUS, if both cut and sewn or otherwise assembled in the United States, or in one or more CBTPA beneficiary countries, or in both, other than articles entered as articles described in paragraphs (a)(1) through (a)(5), paragraphs (a)(7) through (a)(9), or paragraph (a)(12), and provided that any applicable additional requirements set forth in § 10.228 are met; (7) Apparel articles, other than articles described in paragraph (a)(6) of this section, that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more CBTPA beneficiary countries, from fabrics or yarn that is not formed in the United States or in one or more CBTPA beneficiary countries, to the extent that apparel articles of those fabrics or yarn would be eligible for preferential treatment, without regard to the source of the fabrics or yarn, under Annex 4-B of the USMCA; (8) Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more CBTPA beneficiary countries from fabrics or yarn that the President or his designee has designated in the Federal Register (9) A handloomed, handmade, or folklore textile or apparel article of a CBTPA beneficiary country that the President or his designee and representatives of the CBTPA beneficiary country mutually agree is a handloomed, handmade, or folklore article and that is certified as a handloomed, handmade, or folklore article by the competent authority of the CBTPA beneficiary country; (10) Textile luggage assembled in a CBTPA beneficiary country from fabric wholly formed and cut in the United States, from yarns wholly formed in the United States, that is entered under subheading 9802.00.80 of the HTSUS; (11) Textile luggage assembled in a CBTPA beneficiary country from fabric cut in a CBTPA beneficiary country from fabric wholly formed in the United States from yarns wholly formed in the United States; (12) Knitted or crocheted apparel articles cut and assembled in one or more CBTPA beneficiary countries from fabrics wholly formed in the United States from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed wholly in the United States), provided that the assembly is with thread formed in the United States, and provided that any other processing involving the article conforms to the rules set forth in paragraph (b) of this section; and (13) Apparel articles sewn or otherwise assembled in one or more CBTPA beneficiary countries with thread formed in the United States: (i) From components cut in the United States and in one or more CBTPA beneficiary countries from fabric wholly formed in the United States from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS); (ii) From components knit-to-shape in the United States and one or more CBTPA beneficiary countries from yarns wholly formed in the United States; or (iii) From any combination of two or more of the cutting or knitting-to-shape operations described in paragraph (a)(13)(i) or paragraph (a)(13)(ii) of this section; and (iv) Provided that any processing not described in this paragraph (a)(13) conforms to the rules set forth in paragraph (b) of this section. (b) Dyeing, printing, finishing and other operations Dyeing, printing and finishing operations. (i) In the case of an article described in paragraph (a)(1), (a)(2), (a)(3), (a)(12), or (a)(13) of this section that is entered on or after September 1, 2002, and that contains a knitted or crocheted or woven fabric, or a knitted or crocheted or woven fabric component produced from fabric, that was wholly formed in the United States from yarns wholly formed in the United States, any dyeing, printing, or finishing of that knitted or crocheted or woven fabric or component must have been carried out in the United States; and (ii) In the case of assembled luggage described in paragraph (a)(10) of this section, an operation may be performed in a CBTPA beneficiary country only if that operation is incidental to the assembly process within the meaning of § 10.16. (2) Other operations. (c) Special rules for certain component materials Foreign findings, trimmings, interlinings, fibers and yarns General. (A) Findings and trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “findings and trimmings” include, but are not limited to, hooks and eyes, snaps, buttons, “bow buds,” decorative lace trim, elastic strips (but only if they are each less than 1 inch in width and are used in the production of brassieres), zippers (including zipper tapes), labels, and sewing thread except in the case of an article described in paragraph (a)(3) or (a)(12) of this section; (B) Interlinings of foreign origin, if the value of those interlinings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “interlinings” include only a chest type plate, a “hymo” piece, or “sleeve header,” of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments; (C) Any combination of findings and trimmings of foreign origin and interlinings of foreign origin, if the total value of those findings and trimmings and interlinings does not exceed 25 percent of the cost of the components of the assembled article; or (D) Fibers or yarns not wholly formed in the United States or in one or more CBTPA beneficiary countries if the total weight of all those fibers and yarns is not more than 7 percent of the total weight of the article, except in the case of any apparel article described in paragraph (a)(1) through (a)(5) or (a)(12) of this section containing elastomeric yarns which will be eligible for preferential treatment only if those yarns are wholly formed in the United States. (ii) “Cost” and “value” defined. (A) The price of the components, findings and trimmings, or interlinings when last purchased, f.o.b. port of exportation, as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of exportation: ( 1 ( 2 (B) If the price cannot be determined under paragraph (c)(1)(ii)(A) of this section or if Customs finds that price to be unreasonable, all reasonable expenses incurred in the growth, production, manufacture, or other processing of the components, findings and trimmings, or interlinings, including the cost or value of materials and general expenses, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the components, findings and trimmings, or interlinings to the port of exportation. (iii) Treatment of fibers and yarns as findings or trimmings. (2) Special rule for nylon filament yarn. (3) Dyed, printed, or finished thread. (d) Imported directly defined. (1) Direct shipment from any CBTPA beneficiary country to the United States without passing through the territory of any country that is not a CBTPA beneficiary country; (2) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA beneficiary country, the articles in the shipment do not enter into the commerce of any country that is not a CBTPA beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon arrival in the United States are imported directly only if they: (i) Remained under the control of the customs authority of the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the producer's sales agent; and (iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000, as amended by T.D. 01-74, 66 FR 50537, Oct. 4, 2001; T.D. 03-12, 68 FR 13832, Mar. 21, 2003; CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.224 Certificate of Origin. (a) General. (1) Its reasonable reliance on the producer's written representation that the article qualifies for preferential treatment; or (2) A completed and signed Certificate of Origin for the article voluntarily provided to the exporter by the producer. (b) Form of Certificate. (c) Preparation of Certificate. (1) Blocks 1 through 5 pertain only to the final article exported to the United States for which preferential treatment may be claimed; (2) Block 1 should state the legal name and address (including country) of the exporter; (3) Block 2 should state the legal name and address (including country) of the producer. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers. If this information is confidential, it is acceptable to state “available to Customs upon request” in block 2. If the producer and the exporter are the same, state “same” in block 2; (4) Block 3 should state the legal name and address (including country) of the importer; (5) In block 4, insert the letter that designates the preference group which applies to the article according to the description contained in the CFR provision cited on the Certificate for that group; (6) Block 5 should provide a full description of each article. The description should be sufficient to relate it to the invoice description and to the description of the article in the international Harmonized System. Include the invoice number as shown on the commercial invoice or, if the invoice number is not known, include another unique reference number such as the shipping order number; (7) Blocks 6 through 10 must be completed only when the block in question calls for information that is relevant to the preference group identified in block 4; (8) Block 6 should state the legal name and address (including country) of the fabric producer; (9) Block 7 should state the legal name and address (including country) of the yarn producer; (10) Block 8 should state the legal name and address (including country) of the thread producer; (11) Block 9 should state the name of the folklore article or should state that the article is handloomed or handmade of handloomed fabric; (12) Block 10 should be completed if the article described in block 5 incorporates a fabric or yarn described in preference group G and should state the name of the fabric or yarn that has been considered as being in short supply in the USMCA or that has been designated as not available in commercial quantities in the United States; (13) Block 11 must contain the signature of the exporter or of the exporter's authorized agent having knowledge of the relevant facts; (14) Block 15 should reflect the date on which the Certificate was completed and signed; (15) Block 16 should be completed if the Certificate is intended to cover multiple shipments of identical articles as described in block 5 that are imported into the United States during a specified period of up to one year (see § 10.226(b)(4)(ii)). The “from” date is the date on which the Certificate became applicable to the article covered by the blanket Certificate (this date may be prior to the date reflected in block 15). The “to” date is the date on which the blanket period expires; and (16) The Certificate may be printed and reproduced locally. If more space is needed to complete the Certificate, attach a continuation sheet. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000, as amended by T.D. 03-12, 68 FR 13833, Mar. 21, 2003; CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] Editorial Note: By CBP Dec. 25-12, 90 FR 43157, Sept. 8, 2025, § 10.224 was amended; however, the amendment could not be incorporated due to inaccurate amendatory instruction. § 10.225 Filing of claim for preferential treatment. (a) Declaration. (b) Corrected declaration. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000, as amended by T.D. 03-12, 68 FR 13835, Mar. 21, 2003] § 10.226 Maintenance of records and submission of Certificate by importer. (a) Maintenance of records. (b) Submission of Certificate. (1) Must be in writing or must be transmitted electronically pursuant to any electronic data interchange system authorized by Customs for that purpose; (2) Must be signed by the exporter or by the exporter's authorized agent having knowledge of the relevant facts; (3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and (4) May be applicable to: (i) A single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (ii) Multiple importations of identical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph and § 10.224(c)(15), “identical articles” means articles that are the same in all material respects, including physical characteristics, quality, and reputation. (c) Correction and nonacceptance of Certificate. (d) Certificate not required General. (i) An importation of an article for which the Center director has in writing waived the requirement for a Certificate of Origin because the Center director is otherwise satisfied that the article qualifies for preferential treatment; (ii) A non-commercial importation of an article; or (iii) A commercial importation of an article whose value does not exceed US $2,500, provided that, unless waived by the Center director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement: I hereby certify that the article covered by this shipment qualifies for preferential treatment under the CBTPA. Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent Name Title Address Signature and Date (2) Exception. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000, as amended by T.D. 03-12, 68 FR 13835, Mar. 21, 2003] § 10.227 Verification and justification of claim for preferential treatment. (a) Verification by Customs. (1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter; (2) Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and (3) Evidence to document the use of U.S. materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents. (b) Importer requirements. (1) Must have records that explain how the importer came to the conclusion that the textile or apparel article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it is specifically described in one of the provisions under § 10.223(a). If the importer is claiming that the article incorporates fabric or yarn that was wholly formed in the United States, the importer must have records that identify the U.S. producer of the fabric or yarn. A properly completed Certificate of Origin in the form set forth in § 10.224(b) is a record that would serve these purposes; (2) Must establish and implement internal controls which provide for the periodic review of the accuracy of the Certificates of Origin or other records referred to in paragraph (b)(1) of this section; (3) Must have shipping papers that show how the article moved from the CBTPA beneficiary country to the United States. If the imported article was shipped through a country other than a CBTPA beneficiary country and the invoices and other documents from the CBTPA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.223(d)(3)(i) through (iii) were met; and (4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this section justify the importer's claim for preferential treatment. [T.D. 00-68, 65 FR 59658, Oct. 5, 2000, as amended by T.D. 03-12, 68 FR 13835, Mar. 21, 2003] § 10.228 Additional requirements for preferential treatment of brassieres. (a) Definitions. (1) Producer. (2) Entity controlling production. (3) Fabrics formed in the United States. (4) Cost. (i) The price of the fabrics when last purchased, f.o.b. port of exportation, as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of exportation: (A) The price as set out in the invoice or other commercial documents adjusted to arrive at an f.o.b. port of exportation price; or (B) If no exportation to a CBTPA beneficiary country is involved, the price as set out in the invoice or other commercial documents, less the freight, insurance, packing, and other costs incurred in transporting the fabrics to the place of production if included in that price; or (ii) If the price cannot be determined under paragraph (a)(4)(i) of this section or if CBP finds that price to be unreasonable, all reasonable expenses incurred in the growth, production, manufacture, or other processing of the fabrics, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in forming the fabrics) and general expenses, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabrics to the port of exportation. (5) Declared customs value. (i) The cost of fabrics formed in the United States that the producer or entity controlling production can verify; and (ii) The cost of all other fabric contained in the article, exclusive of all findings and trimmings, determined as follows: (A) In the case of fabric purchased by the producer or entity controlling production, the f.o.b. port of exportation price of the fabric as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of exportation: ( 1 ( 2 (B) In the case of fabric for which the cost cannot be determined under paragraph (a)(5)(ii)(A) of this section or if CBP finds that cost to be unreasonable, all reasonable expenses incurred in the growth, production, or manufacture of the fabric, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in the growth, production, or manufacture of the fabric), general expenses and embroidering and dyeing, printing, and finishing expenses, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabric to the port of exportation; (C) In the case of fabric components purchased by the producer or entity controlling production, the f.o.b. port of exportation price of those fabric components as set out in the invoice or other commercial documents, less the cost or value of any non-textile materials, and less expenses for cutting or other processing to create the fabric components other than knitting to shape, that the producer or entity controlling production can verify, or, if the price is other than f.o.b. port of exportation: ( 1 ( 2 (D) In the case of fabric components for which a fabric cost cannot be determined under paragraph (a)(5)(ii)(C) of this section or if CBP finds that cost to be unreasonable: all reasonable expenses incurred in the growth, production, or manufacture of the fabric components, including the cost or value of materials (which does not include the cost of recoverable scrap generated in the growth, production, or manufacture of the fabric components) and general expenses, but excluding the cost or value of any non-textile materials, and excluding expenses for cutting or other processing to create the fabric components other than knitting to shape, that the producer or entity controlling production can verify, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabric components to the port of exportation. (6) Year. (7) Entered. (b) Limitations on preferential treatment General. (i) The aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of all of those articles of that producer or that entity controlling production that are entered as articles described in § 10.223(a)(6) during the immediately preceding year was at least 75 percent of the aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that are entered as articles described in § 10.223(a)(6) during that year; or (ii) In a case in which the 75 percent requirement set forth in paragraph (b)(1)(i) of this section was not met during a year and therefore those articles of that producer or that entity controlling production were not eligible for preferential treatment during the following year, the aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of all of those articles of that producer or that entity controlling production that conform to the production standards set forth in § 10.223(a)(6) and that were entered during the immediately preceding year was at least 85 percent of the aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that conform to the production standards set forth in § 10.223(a)(6) and that were entered during that year; and (iii) In conjunction with the filing of the claim for preferential treatment under § 10.225, the importer records on the entry summary or warehouse withdrawal for consumption (CBP Form 7501, column 34), or its electronic equivalent, the distinct and unique identifier assigned by CBP to the applicable documentation prescribed under paragraph (c) of this section. (2) Rules of application General. (A) The articles in question must have been produced in the manner specified in § 10.223(a)(6) and the articles in question must be entered within the same year; (B) Articles that are exported to countries other than the United States and are never entered are not to be considered in determining compliance with the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section; (C) Articles that are entered under an HTSUS subheading other than the HTSUS subheading which pertains to articles described in § 10.223(a)(6) are not to be considered in determining compliance with the 75 percent standard specified in paragraph (b)(1)(i) of this section; (D) For purposes of determining compliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section, all articles that conform to the production standards set forth in § 10.223(a)(6) must be considered, regardless of the HTSUS subheading under which they were entered; (E) Fabric components and fabrics that constitute findings or trimmings are not to be considered in determining compliance with the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section; (F) Beginning October 1, 2002, in order for articles to be eligible for preferential treatment in a given year, a producer of, or entity controlling production of, those articles must have met the 75 percent standard specified in paragraph (b)(1)(i) of this section during the immediately preceding year. If articles of a producer or entity controlling production fail to meet the 75 percent standard specified in paragraph (b)(1)(i) of this section during a year, articles of that producer or entity controlling production: ( 1 ( 2 ( 3 (G) A new producer or new entity controlling production, that is, a producer or entity controlling production which did not produce or control production of articles that were entered as articles described in § 10.223(a)(6) during the immediately preceding year, must first establish compliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section as a prerequisite to preparation of the declaration of compliance referred to in paragraph (c) of this section; (H) A declaration of compliance prepared by a producer or by an entity controlling production must cover all production of that producer or all production that the entity controls for the year in question; (I) A producer is not required to prepare a declaration of compliance if all of its production is covered by a declaration of compliance prepared by an entity controlling production; (J) In the case of a producer, the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section and the declaration of compliance procedure under paragraph (c) of this section apply to all articles of that producer for the year in question, even if some but not all of that production is also covered by a declaration of compliance prepared by an entity controlling production; (K) The U.S. importer does not have to be the producer or the entity controlling production who prepared the declaration of compliance; and (L) The exclusion references regarding findings and trimmings in paragraph (b)(1)(i) and paragraph (b)(1)(ii) of this section apply to all findings and trimmings, whether or not they are of foreign origin. (ii) Examples. Example 1. A CBTPA beneficiary country producer of articles that meet the production standards specified in § 10.223(a)(6) in the first year sends 50 percent of that production to CBTPA region markets and the other 50 percent to the U.S. market; the cost of the fabrics formed in the United States equals 100 percent of the value of all of the fabric in the articles sent to the CBTPA region and 60 percent of the value of all of the fabric in the articles sent to the United States. Although the cost of fabrics formed in the United States is more than 75 percent of the value of all of the fabric used in all of the articles produced, this producer could not prepare a valid declaration of compliance because the articles sent to the United States did not meet the minimum 75 percent standard. Example 2. A producer sends to the United States in the first year three shipments of articles that meet the description in § 10.223(a)(6); one of those shipments is entered under the HTSUS subheading that covers articles described in § 10.223(a)(6), the second shipment is entered under the HTSUS subheading that covers articles described in § 10.223(a)(12), and the third shipment is entered under subheading 9802.00.80, HTSUS. In determining whether the minimum 75 percent standard has been met in the first year for purposes of entry of articles under the HTSUS subheading that covers articles described in § 10.223(a)(6) during the following (that is, second) year, consideration must be restricted to the articles in the first shipment and therefore must not include the articles in the second and third shipments. Example 3. A producer in the second year begins production of articles that conform to the production standards specified in § 10.223(a)(6); some of those articles are entered in that year under HTSUS subheading 6212.10 and others under HTSUS subheading 9802.00.80 but none are entered in that year under the HTSUS subheading which pertains to articles described in § 10.223(a)(6) because the 75 percent standard had not been met in the preceding (that is, first) year. In this case the 85 percent standard applies, and all of the articles that were entered under the various HTSUS provisions in the second year must be taken into account in determining whether that 85 percent standard has been met. If the 85 percent was met in the aggregate for all of the articles entered in the second year, in the next (that is, third) year articles of that producer may receive preferential treatment under the HTSUS subheading which pertains to articles described in § 10.223(a)(6). Example 4. An entity controlling production of articles that meet the description in § 10.223(a)(6) buys for the U.S., Canadian and Mexican markets; the articles in each case are first sent to the United States where they are entered for consumption and then placed in a commercial warehouse from which they are shipped to various stores in the United States, Canada and Mexico. Notwithstanding the fact that some of the articles ultimately ended up in Canada or Mexico, a declaration of compliance prepared by the entity controlling production must cover all of the articles rather than only those that remained in the United States because all of those articles had been entered for consumption. Example 5. Fabric is cut and sewn in the United States with other U.S. materials to form cups which are joined together to form brassiere front subassemblies in the United States, and those front subassemblies are then placed in a warehouse in the United States where they are held until the following year; during that following year all of the front subassemblies are shipped to a CBTPA beneficiary country where they are assembled with elastic strips and labels produced in an Asian country and other fabrics, components or materials produced in the CBTPA beneficiary country to form articles that meet the production standards specified in § 10.223(a)(6) and that are then shipped to the United States and entered during that same year. In determining whether the entered articles meet the minimum 75 or 85 percent standard, the fabric in the elastic strips and labels is to be disregarded entirely because the strips and labels constitute findings or trimmings for purposes of this section, and all of the fabric in the front subassemblies is countable because it was all formed in the United States and used in the production of articles that were entered in the same year. Example 6. A CBTPA beneficiary country producer's entire production of articles that meet the description in § 10.223(a)(6) is sent to a U.S. importer in two separate shipments, one in February and the other in June of the same calendar year; the articles shipped in February do not meet the minimum 75 percent standard, the articles shipped in June exceed the 85 percent standard, and the articles in the two shipments, taken together, do meet the 75 percent standard; the articles covered by the February shipment are entered for consumption on March 1 of that calendar year, and the articles covered by the June shipment are placed in a CBP bonded warehouse upon arrival and are subsequently withdrawn from warehouse for consumption on November 1 of that calendar year. The CBTPA beneficiary country producer may not prepare a valid declaration of compliance covering the articles in the first shipment because those articles did not meet the minimum 75 percent standard and because those articles cannot be included with the articles of the second shipment on the same declaration of compliance since they were entered in a different year. However, the CBTPA beneficiary country producer may prepare a valid declaration of compliance covering the articles in the second shipment because those articles did meet the requisite 85 percent standard which would apply for purposes of entry of articles in the following year. Example 7. A producer in the second year begins production of articles exclusively for the U.S. market that meet the production standards specified in § 10.223(a)(6), but the entered articles do not meet the requisite 85 percent standard until the third year; the entered articles fail to meet the 75 percent standard in the fourth year; and the entered articles do not attain the 85 percent standard until the sixth year. The producer's articles may not receive preferential treatment during the second year because there was no production (and thus there were no entered articles) in the immediately preceding (that is, first) year on which to assess compliance with the 75 percent standard. The producer's articles also may not receive preferential treatment during the third year because the 85 percent standard was not met in the immediately preceding (that is, second) year. However, the producer's articles are eligible for preferential treatment during the fourth year based on compliance with the 85 percent standard in the immediately preceding (that is, third) year. The producer's articles may not receive preferential treatment during the fifth year because the 75 percent standard was not met in the immediately preceding (that is, fourth) year. The producer's articles may not receive preferential treatment during the sixth year because the 85 percent standard has become applicable and was not met in the immediately preceding (that is, fifth) year. The producer's articles are eligible for preferential treatment during the seventh year because the 85 percent standard was met in the immediately preceding (that is, sixth) year, and during that seventh year the 75 percent standard is applicable for purposes of determining whether the producer's articles are eligible for preferential treatment in the following (that is, eighth) year. Example 8. An entity controlling production (Entity A) uses five CBTPA beneficiary country producers (Producers 1-5), all of which produce only articles that meet the description in § 10.223(a)(6); Producers 1-4 send all of their production to the United States and Producer 5 sends 10 percent of its production to the United States and the rest to Europe; Producers 1-3 and Producer 5 produce only pursuant to contracts with Entity A, but Producer 4 also operates independently of Entity A by producing for several U.S. importers, one of which is an entity controlling production (Entity B) that also controls all of the production of articles of one other producer (Producer 6) which sends all of its production to the United States. A declaration of compliance prepared by Entity A must cover all of the articles of Producers 1-3 and the 10 percent of articles of Producer 5 that are sent to the United States and that portion of the articles of Producer 4 that are produced pursuant to the contract with Entity A, because Entity A controls the production of those articles. There is no need for Producers 1-3 and Producer 5 to prepare a declaration of compliance because they have no production that is not covered by a declaration of compliance prepared by an entity controlling production. A declaration of compliance prepared by Producer 4 would cover all of its production, that is, articles produced for Entity A, articles produced for Entity B, and articles produced independently for other U.S. importers; a declaration of compliance prepared by Entity B must cover that portion of the production of Producer 4 that it controls as well as all of the production of Producer 6 because Entity B also controls all of the production of Producer 6. Producer 6 would not prepare a declaration of compliance because all of its production is covered by the declaration of compliance prepared by Entity B. (c) Documentation Initial declaration of compliance. (2) Amended declaration of compliance. (i) The producer or the entity controlling production must file with the CBP office identified in paragraph (c)(4) of this section an amended declaration of compliance containing that final year-end information or other corrected information; or (ii) If that final year-end information or other corrected information demonstrates noncompliance with the applicable 75 or 85 percent requirement, the producer or the entity controlling production must in writing advise both the CBP office identified in paragraph (c)(4) of this section and each appropriate U.S. importer of that fact. (3) Form and preparation of declaration of compliance Form. Caribbean Basin Trade Partnership Act Declaration of Compliance for Brassieres [19 CFR 10.223(a)(6) and 10.228] 1. Year beginning date: October 1, ______. Official U.S. Customs and Border Year ending date: September 30, ______. Protection Use Only Assigned number: __________ Assignment date: __________ 2. Identity of preparer (producer or entity controlling production): Full name and address: Telephone number: __________ Facsimile number: __________ Importer identification number: __________ 3. If the preparer is an entity controlling production, provide the following for each producer: Full name and address: Telephone number: __________ Facsimile number: __________ 4. Aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of brassieres that were entered during the year: __________ 5. Aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in brassieres that were entered during the year: __________ 6. I declare that the aggregate cost of fabric (exclusive of all findings and trimmings) formed in the United States was at least 75 percent (or 85 percent, if applicable under 19 CFR 10.228(b)(1)(ii)) of the aggregate declared customs value of the fabric contained in brassieres entered during the year. 7. Authorized signature: 8. Name and title (print or type): __________________ Date: (ii) Preparation. (A) In block 1, fill in the year commencing October 1 and ending September 30 of the calendar year during which the applicable 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section was met; (B) Block 2 should state the legal name and address (including country) of the preparer and should also include the preparer's importer identification number (see § 24.5 of this chapter), if the preparer has one; (C) Block 3 should state the legal name and address (including country) of the CBTPA beneficiary country producer if that producer is not already identified in block 2. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers; (D) Blocks 4 and 5 apply only to articles that were entered during the year identified in block 1; and (E) In block 7, the signature must be that of an authorized officer, employee, agent or other person having knowledge of the relevant facts and the date must be the date on which the declaration of compliance was completed and signed. (4) Filing of declaration of compliance. (i) Must be completed either in the English language or in the language of the country in which the articles covered by the declaration were produced. If the declaration is completed in a language other than English, the producer or the entity controlling production must provide to CBP upon request a written English translation of the declaration; and (ii) Must be filed with the New York Strategic Trade Center, Customs and Border Protection, 1 Penn Plaza, New York, New York 10119. (d) Verification of declaration of compliance Verification procedure. (i) All records required to be made, kept, and made available to CBP by the importer, the producer, the entity controlling production, or any other person under part 163 of this chapter; (ii) Documentation and other information regarding all articles that meet the production standards specified in § 10.223(a)(6) that were exported to the United States and that were entered during the year in question, whether or not a claim for preferential treatment was made under § 10.225. Those records and other information include, but are not limited to, work orders and other production records, purchase orders, invoices, bills of lading and other shipping documents; (iii) Evidence to document the cost of fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work orders and other production records, and inventory control records; (iv) Evidence to document the cost or value of all fabric other than fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work orders and other production records, and inventory control records; and (v) Accounting books and documents to verify the records and information referred to in paragraphs (d)(1)(ii) through (d)(1)(iv) of this section. The verification of purchase orders, invoices and bills of lading will be accomplished through the review of a distinct audit trail. The audit trail documents must consist of a cash disbursement or purchase journal or equivalent records to establish the purchase of the fabric. The headings in each of these journals or other records must contain the date, vendor name, and amount paid for the fabric. The verification of production records and work orders will be accomplished through analysis of the inventory records of the producer or entity controlling production. The inventory records must reflect the production of the finished article which must be referenced to the original purchase order or lot number covering the fabric used in production. In the inventory production records, the inventory should show the opening balance of the inventory plus the purchases made during the accounting period and the inventory closing balance. (2) Notice of determination. Federal Register. [CBP Dec. 04-40, 69 FR 69518, Nov. 30, 2004] Non-Textile Articles Under the United States-Caribbean Basin Trade Partnership Act Source: T.D. 00-68, 65 FR 59663, Oct. 5, 2000, unless otherwise noted. § 10.231 Applicability. Title II of Public Law 106-200 (114 Stat. 251), entitled the United States-Caribbean Basin Trade Partnership Act (CBTPA), amended section 213(b) of the Caribbean Basin Economic Recovery Act (the CBERA, 19 U.S.C. 2701-2707) to authorize the President to extend additional trade benefits to countries that have been designated as beneficiary countries under the CBERA. Section 213(b)(3) of the CBERA (19 U.S.C. 2703(b)(3)) provides for special preferential tariff treatment of certain non-textile articles that are otherwise excluded from duty-free treatment under the CBERA. The provisions of §§ 10.231-10.237 of this part set forth the legal requirements and procedures that apply for purposes of obtaining preferential tariff treatment pursuant to CBERA section 213(b)(3). [T.D. 00-68, 65 FR 59663, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000] § 10.232 Definitions. When used in §§ 10.231 through 10.237, the following terms have the meanings indicated: CBERA. CBTPA beneficiary country. Federal Register, CBTPA originating good. HTSUS. Preferential tariff treatment. USMCA. [T.D. 00-68, 65 FR 59663, Oct. 5, 2000; 65 FR 67264, Nov. 9, 2000, as amended by CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.233 Articles eligible for preferential tariff treatment. (a) General. (1) Footwear not designated on August 5, 1983, as eligible articles for the purpose of the Generalized System of Preferences under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467); (2) Tuna, prepared or preserved in any manner, in airtight containers; (3) Petroleum, or any product derived from petroleum, provided for in headings 2709 and 2710 of the HTSUS; (4) Watches and watch parts (including cases, bracelets, and straps), of whatever type including, but not limited to, mechanical, quartz digital or quartz analog, if those watches or watch parts contain any material which is the product of any country with respect to which HTSUS column 2 rates of duty apply; and (5) Articles to which reduced rates of duty apply under § 10.198a, except as otherwise provided in paragraph (c) of this section. (b) Application of the USMCA rules of origin. (1) No country other than the United States and a CBTPA beneficiary country may be treated as being a party to the USMCA; (2) Any reference to trade between the United States and Mexico will be deemed to refer to trade between the United States and a CBTPA beneficiary country; (3) Any reference to a party will be deemed to refer to a CBTPA beneficiary country or the United States; and (4) Any reference to parties will be deemed to refer to any combination of CBTPA beneficiary countries or to the United States and one or more CBTPA beneficiary countries (or any combination involving the United States and CBTPA beneficiary countries). (c) Duty reductions for leather-related articles. (d) Imported directly defined. (1) Direct shipment from any CBTPA beneficiary country to the United States without passing through the territory of any country that is not a CBTPA beneficiary country; (2) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA beneficiary country, the articles in the shipment do not enter into the commerce of any country that is not a CBTPA beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon arrival in the United States are imported directly only if they: (i) Remained under the control of the customs authority of the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the producer's sales agent; and (iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition. [T.D. 00-68, 65 FR 59663, Oct. 5, 2000, as amended by CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.234 Certificate of Origin. A Certificate of Origin as specified in § 10.236 must be employed to certify that an article described in § 10.233(a)(1) through (5) being exported from a CBTPA beneficiary country to the United States qualifies for the preferential tariff treatment referred to in § 10.231. The Certificate of Origin must be prepared by the exporter in the CBTPA beneficiary country. Where the CBTPA beneficiary country exporter is not the producer of the article, that exporter may complete and sign a Certificate of Origin on the basis of: (a) Its reasonable reliance on the producer's written representation that the article qualifies for preferential tariff treatment; or (b) A completed and signed Certificate of Origin for the article voluntarily provided to the exporter by the producer. § 10.235 Filing of claim for preferential tariff treatment. (a) Declaration. (b) Corrected declaration. § 10.236 Maintenance of records and submission of Certificate by importer. (a) Maintenance of records. (b) Submission of Certificate. (1) Must be on CBP Form 450, including privately-printed copies of that Form, or, as an alternative to CBP Form 450, in an approved computerized format or other medium or format as is approved by the Office of International Trade, U.S. Customs and Border Protection, Washington, DC 20229. An alternative format must contain the same information and certification set forth on CBP Form 450; (2) Must be signed by the exporter or by the exporter's authorized agent having knowledge of the relevant facts; (3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and (4) May be applicable to: (i) A single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (ii) Multiple importations of identical articles into the United States that occur within a specified period, not to exceed 12 months, set out in the Certificate by the exporter. (c) Correction and nonacceptance of Certificate. (d) Certificate not required General. (i) An importation of an article for which the Center director has in writing waived the requirement for a Certificate of Origin because the Center director is otherwise satisfied that the article qualifies for preferential tariff treatment; (ii) A non-commercial importation of an article; or (iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the Center director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement: I hereby certify that the article covered by this shipment qualifies for preferential tariff treatment under the CBTPA. Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent Name Title Address Signature and Date (2) Exception. § 10.237 Verification and justification of claim for preferential tariff treatment. (a) Verification by Customs. (1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter; (2) Documentation and other information in a CBTPA beneficiary country regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and (3) Evidence in a CBTPA beneficiary country to document the use of U.S. materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents. (b) Importer requirements. (1) Must have records that explain how the importer came to the conclusion that the article qualifies for preferential tariff treatment. Those records must include documents that support a claim that the article in question qualifies for preferential tariff treatment because it meets the applicable rule of origin set forth in General Note 11, HTSUS, and in part 182, appendix A of this chapter. A properly completed Certificate of Origin in the form prescribed in § 10.236(b) is a record that would serve this purpose; (2) Must establish and implement internal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in paragraph (b)(1) of this section; (3) Must have shipping papers that show how the article moved from the CBTPA beneficiary country to the United States. If the imported article was shipped through a country other than a CBTPA beneficiary country and the invoices and other documents from the CBTPA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.233(d)(3)(i) through (iii) were met; and (4) Must be prepared to explain, upon request from CBP, how the records and internal controls referred to in paragraphs (b)(1) through (3) of this section justify the importer's claim for preferential tariff treatment. [T.D. 00-68, 65 FR 59663, Oct. 5, 2000, as amended by CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025; CBP Dec. 25-12, 90 FR 43157, Sept. 8, 2025] Subpart F—Andean Trade Promotion and Drug Eradication Act Apparel and Other Textile Articles Under the Andean Trade Promotion and Drug Eradication Act Source: Sections 10.241 through 10.248 issued by CBP Dec. 06-21, 71 FR 44574, Aug. 7, 2006, unless otherwise noted. § 10.241 Applicability. Title XXXI of Public Law 107-210 (116 Stat. 933), entitled the Andean Trade Promotion and Drug Eradication Act (ATPDEA), amended sections 202, 203, 204, and 208 of the Andean Trade Preference Act (the ATPA, 19 U.S.C. 3201-3206) to authorize the President to extend additional trade benefits to countries that are designated as beneficiary countries under the ATPA. Section 204(b)(3) of the ATPA (19 U.S.C. 3203(b)(3)) provides for the preferential treatment of certain apparel and other textile articles from those ATPA beneficiary countries which the President designates as ATPDEA beneficiary countries. The provisions of §§ 10.241 through 10.248 of this part set forth the legal requirements and procedures that apply for purposes of obtaining preferential treatment pursuant to ATPA section 204(b)(3) and Subchapter XXI, Chapter 98, HTSUS. § 10.242 Definitions. When used in §§ 10.241 through 10.248, the following terms have the meanings indicated: Apparel articles. Assembled or sewn or otherwise assembled in one or more ATPDEA beneficiary countries. ATPA. ATPDEA beneficiary country. Federal Register, Chief value. Cut in one or more ATPDEA beneficiary countries. Foreign origin. HTSUS. Knit-to-Shape Components. Luggage. NAFTA. Preferential treatment. Self-start edge. Wholly formed fabric components. Wholly formed fabrics. Wholly formed yarns. § 10.243 Articles eligible for preferential treatment. (a) General. (1) Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries, or in the United States, or in both, exclusively from any one of the following: (i) Fabrics or fabric components wholly formed, or components knit-to-shape, in the United States, from yarns wholly formed in the United States or in one or more ATPDEA beneficiary countries (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in the United States), provided that, if the apparel article is assembled from knitted or crocheted or woven wholly formed fabrics or from knitted or crocheted or woven wholly formed fabric components produced from fabric, all dyeing, printing, and finishing of that knitted or crocheted or woven fabric or component was carried out in the United States; (ii) Fabrics or fabric components formed, or components knit-to-shape, in one or more ATPDEA beneficiary countries from yarns wholly formed in one or more ATPDEA beneficiary countries, if those fabrics (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more ATPDEA beneficiary countries) or components are in chief value of llama, alpaca, and/or vicuña; (iii) Fabrics or yarns, provided that apparel articles (except articles classifiable under subheading 6212.10 of the HTSUS) of those fabrics or yarns would be considered an originating good under General Note 12(t), HTSUS, if the apparel articles had been imported directly from Canada or Mexico; or (iv) Fabrics or yarns that the President or his designee has designated in the Federal Register (2) Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries, or in the United States, or in both, exclusively from a combination of fabrics, fabric components, knit-to-shape components or yarns described in two or more of paragraphs (a)(1)(i) through (a)(1)(iv) of this section; (3) A handloomed, handmade, or folklore apparel or other textile article of an ATPDEA beneficiary country that the President or his designee and representatives of the ATPDEA beneficiary country mutually agree is a handloomed, handmade, or folklore article and that is certified as a handloomed, handmade, or folklore article by the competent authority of the ATPDEA beneficiary country; (4) Brassieres classifiable under subheading 6212.10 of the HTSUS, if both cut and sewn or otherwise assembled in the United States, or in one or more ATPDEA beneficiary countries, or in both, other than articles entered as articles described in paragraphs (a)(1) through (a)(3) and (a)(7) of this section, and provided that any applicable additional requirements set forth in § 10.248 are met; (5) Textile luggage assembled in an ATPDEA beneficiary country from fabric wholly formed and cut in the United States, from yarns wholly formed in the United States, that is entered under subheading 9802.00.80 of the HTSUS; (6) Textile luggage assembled in one or more ATPDEA beneficiary countries from fabric cut in one or more ATPDEA beneficiary countries from fabric wholly formed in the United States from yarns wholly formed in the United States; and (7) Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries from fabrics or from fabric components formed, or from components knit-to-shape, in one or more ATPDEA beneficiary countries from yarns wholly formed in the United States or in one or more ATPDEA beneficiary countries (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more ATPDEA beneficiary countries), including apparel articles sewn or otherwise assembled in part but not exclusively from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (a)(1) of this section. (b) Dyeing, printing, finishing and other operations Dyeing, printing and finishing operations. (i) In the case of an article described in paragraph (a)(1), (a)(2), or (a)(7) of this section that contains a knitted or crocheted or woven fabric, or a knitted or crocheted or woven fabric component produced from fabric, that was wholly formed in the United States from yarns wholly formed in the United States or in one or more ATPDEA beneficiary countries, as described in paragraph (a)(1)(i) of this section, any dyeing, printing, or finishing of that knitted or crocheted or woven fabric or component must have been carried out in the United States; and (ii) In the case of assembled luggage described in paragraph (a)(5) of this section, an operation may be performed in an ATPDEA beneficiary country only if that operation is incidental to the assembly process within the meaning of § 10.16. (2) Other operations. (c) Special rules for certain component materials Foreign findings, trimmings, interlinings, and yarns General. (A) Findings and trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “findings and trimmings” include, but are not limited to, sewing thread, hooks and eyes, snaps, buttons, “bow buds,” decorative lace trim, elastic strips, zippers (including zipper tapes), and labels; (B) Interlinings of foreign origin, if the value of those interlinings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “interlinings” include only a chest type plate, a “hymo” piece, or “sleeve header,” of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments; (C) Any combination of findings and trimmings of foreign origin and interlinings of foreign origin, if the total value of those findings and trimmings and interlinings does not exceed 25 percent of the cost of the components of the assembled article; or (D) Yarns not wholly formed in the United States or in one or more ATPDEA beneficiary countries if the total weight of all those yarns is not more than 7 percent of the total weight of the article. (ii) “Cost” and “value” defined. (A) The ex-factory price of the components, findings and trimmings, or interlinings as set out in the invoice or other commercial documents, or, if the price is other than ex-factory, the price as set out in the invoice or other commercial documents adjusted to arrive at an ex-factory price; or (B) If the price cannot be determined under paragraph (c)(1)(ii)(A) of this section or if CBP finds that price to be unreasonable, all reasonable expenses incurred in the growth, production, manufacture, or other processing of the components, findings and trimmings, or interlinings, including the cost or value of materials and general expenses, plus a reasonable amount for profit. (iii) Treatment of yarns as findings or trimmings. (2) Special rule for nylon filament yarn. (d) Imported directly defined. (1) Direct shipment from any ATPDEA beneficiary country to the United States without passing through the territory of any country that is not an ATPDEA beneficiary country; (2) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, the articles in the shipment do not enter into the commerce of any country that is not an ATPDEA beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon arrival in the United States are imported directly only if they: (i) Remained under the control of the customs authority of the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the producer's sales agent; and (iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition. § 10.244 Certificate of Origin. (a) General. (1) The person's reasonable reliance on the producer's written representation that the article qualifies for preferential treatment; or (2) A completed and signed Certificate of Origin for the article voluntarily provided to the person by the producer. (b) Form of Certificate. Andean Trade Promotion and Drug Eradication Act Textile Certificate of Origin 1. Exporter Name & Address: 2. Producer Name & Address: 3. Importer Name & Address: 4. Description of Article: 5. Preference Group: Group Each Description Below Is Only a Summary of the Cited CFR Provision. 19 CFR A Apparel assembled from U.S. formed, dyed, printed and finished fabrics or fabric components, or U.S. formed knit-to-shape components from U.S. or Andean yarns 10.243(a)(1)(i). B Apparel assembled from Andean chief value llama, alpaca or vicuña fabrics, fabric components, or knit-to-shape components, from Andean yarns 10.243(a)(1)(ii). C Apparel assembled from fabrics or yarns considered as being in short supply in the NAFTA 10.243(a)(1)(iii). D Apparel assembled from fabrics or yarns designated as not available in commercial quantities in the United States 10.243(a)(1)(iv). E Apparel assembled from a combination of two or more yarns, fabrics, fabric components, or knit-to-shape components described in preference groups A though D 10.243(a)(2). F Handloomed, handmade, or folklore textile and apparel goods 10.243(a)(3). G Brassieres assembled in the U.S. and/or one or more Andean beneficiary countries 10.243(a)(4). H Textile luggage assembled from U.S. formed fabrics from U.S. yarns 10.243(a)(5)&(6). I Apparel assembled from Andean formed fabrics, fabric components, or knit-to-shape components from U.S. or Andean yarns, whether or not also assembled, in part, from yarns, fabrics and fabric components described in preference groups A through D 10.243(a)(7). 6. U.S./Andean Fabric Producer Name & Address: 7. U.S./Andean Yarn Producer Name & Address: 8. Handloomed, Handmade, or Folklore Article: 9. Name of Short Supply Fabric or Yarn: I certify that the information on this document is complete and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document. I agree to maintain, and present upon request, documentation necessary to support this certificate. 10. Authorized Signature: 11. Company: 12. Name: (Print or Type) 13. Title: 14. Date: (DD/MM/YY) 15. Blanket Period: From: To: 16. Telephone: Facsimile: (c) Preparation of Certificate. (1) Blocks 1 through 5 pertain only to the final article exported to the United States for which preferential treatment may be claimed; (2) Block 1 should state the legal name and address (including country) of the exporter; (3) Block 2 should state the legal name and address (including country) of the producer. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers. If this information is confidential, it is acceptable to state “available to Customs and Border Protection (CBP) upon request” in block 2. If the producer and the exporter are the same, state “same” in block 2; (4) Block 3 should state the legal name and address (including country) of the importer; (5) Block 4 should provide a full description of each article. The description should be sufficient to relate it to the invoice description and to the description of the article in the international Harmonized System. Include the invoice number as shown on the commercial invoice or, if the invoice number is not known, include another unique reference number such as the shipping order number; (6) In block 5, insert the letter that designates the preference group which applies to the article according to the description contained in the CFR provision cited on the Certificate for that group; (7) Blocks 6 through 9 must be completed only when the block in question calls for information that is relevant to the preference group identified in block 5; (8) Block 6 should state the legal name and address (including country) of the fabric producer; (9) Block 7 should state the legal name and address (including country) of the yarn producer; (10) Block 8 should state the name of the folklore article or should state that the article is handloomed or handmade of handloomed fabric; (11) Block 9 should be completed if the article described in block 4 incorporates a fabric or yarn described in preference group C or D and should state the name of the fabric or yarn that has been considered as being in short supply in the NAFTA or that has been designated as not available in commercial quantities in the United States. Block 9 also should be completed if preference group E or I applies to the article described in block 4 and the article incorporates a fabric or yarn described in preference group C or D; (12) Block 10 must contain the signature of the producer or exporter or the producer's or exporter's authorized agent having knowledge of the relevant facts; (13) Block 14 should reflect the date on which the Certificate was completed and signed; (14) Block 15 should be completed if the Certificate is intended to cover multiple shipments of identical articles as described in block 4 that are imported into the United States during a specified period of up to one year (see § 10.246(b)(4)(ii)). The “from” date is the date on which the Certificate became applicable to the article covered by the blanket Certificate (this date may be prior to the date reflected in block 14). The “to” date is the date on which the blanket period expires; and (15) The Certificate may be printed and reproduced locally. If more space is needed to complete the Certificate, attach a continuation sheet. § 10.245 Filing of claim for preferential treatment. (a) Declaration. (b) Corrected declaration. § 10.246 Maintenance of records and submission of Certificate by importer. (a) Maintenance of records. (b) Submission of Certificate. (1) Must be in writing or must be transmitted electronically through any electronic data interchange system authorized by CBP for that purpose; (2) If in writing, must be signed by the producer or exporter or the producer's or exporter's authorized agent having knowledge of the relevant facts; (3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to CBP upon request a written English translation of the Certificate; and (4) May be applicable to: (i) A single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (ii) Multiple importations of identical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph and § 10.244(c)(14), “identical articles” means articles that are the same in all material respects, including physical characteristics, quality, and reputation. (c) Correction and nonacceptance of Certificate. (d) Certificate not required General. (i) An importation of an article for which the Center director has in writing waived the requirement for a Certificate of Origin because the Center director is otherwise satisfied that the article qualifies for preferential treatment; (ii) A non-commercial importation of an article; or (iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the Center director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement: I hereby certify that the article covered by this shipment qualifies for preferential treatment under the ATPDEA. Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent Name Title Address Signature and Date (2) Exception. § 10.247 Verification and justification of claim for preferential treatment. (a) Verification by CBP. (1) All records required to be made, kept, and made available to CBP by the importer or any other person under part 163 of this chapter; (2) Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and (3) Evidence to document the use of U.S. or ATPDEA beneficiary country materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents. (b) Importer requirements. (1) Must have records that explain how the importer came to the conclusion that the apparel or other textile article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it is specifically described in one of the provisions under § 10.243(a). If the importer is claiming that the article incorporates fabric or yarn that was wholly formed in the United States or in an ATPDEA beneficiary country, the importer must have records that identify the producer of the fabric or yarn. A properly completed Certificate of Origin in the form set forth in § 10.244(b) is a record that would serve these purposes; (2) Must establish and implement internal controls which provide for the periodic review of the accuracy of the Certificates of Origin or other records referred to in paragraph (b)(1) of this section; (3) Must have shipping papers that show how the article moved from the ATPDEA beneficiary country to the United States. If the imported article was shipped through a country other than an ATPDEA beneficiary country and the invoices and other documents from the ATPDEA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.243(d)(3)(i) through (iii) were met; and (4) Must be prepared to explain, upon request from CBP, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this section justify the importer's claim for preferential treatment. § 10.248 Additional requirements for preferential treatment of brassieres. (a) Definitions. (1) Producer. (2) Entity controlling production. (3) Fabrics formed in the United States. (4) Cost. (i) The price of the fabrics when last purchased, f.o.b. port of exportation, as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of exportation: (A) The price as set out in the invoice or other commercial documents adjusted to arrive at an f.o.b. port of exportation price; or (B) If no exportation to an ATPDEA beneficiary country is involved, the price as set out in the invoice or other commercial documents, less the freight, insurance, packing, and other costs incurred in transporting the fabrics to the place of production if included in that price; or (ii) If the price cannot be determined under paragraph (a)(4)(i) of this section or if CBP finds that price to be unreasonable, all reasonable expenses incurred in the growth, production, manufacture, or other processing of the fabrics, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in forming the fabrics) and general expenses, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabrics to the port of exportation. (5) Declared customs value. (i) The cost of fabrics formed in the United States that the producer or entity controlling production can verify; and (ii) The cost of all other fabric contained in the article, exclusive of all findings and trimmings, determined as follows: (A) In the case of fabric purchased by the producer or entity controlling production, the f.o.b. port of exportation price of the fabric as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of exportation: ( 1 ( 2 (B) In the case of fabric for which the cost cannot be determined under paragraph (a)(5)(ii)(A) of this section or if CBP finds that cost to be unreasonable, all reasonable expenses incurred in the growth, production, or manufacture of the fabric, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in the growth, production, or manufacture of the fabric), general expenses and embroidering and dyeing, printing, and finishing expenses, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabric to the port of exportation; (C) In the case of fabric components purchased by the producer or entity controlling production, the f.o.b. port of exportation price of those fabric components as set out in the invoice or other commercial documents, less the cost or value of any non-textile materials, and less expenses for cutting or other processing to create the fabric components other than knitting to shape, that the producer or entity controlling production can verify, or, if the price is other than f.o.b. port of exportation: ( 1 ( 2 (D) In the case of fabric components for which a fabric cost cannot be determined under paragraph (a)(5)(ii)(C) of this section or if CBP finds that cost to be unreasonable: All reasonable expenses incurred in the growth, production, or manufacture of the fabric components, including the cost or value of materials (which does not include the cost of recoverable scrap generated in the growth, production, or manufacture of the fabric components) and general expenses, but excluding the cost or value of any non-textile materials, and excluding expenses for cutting or other processing to create the fabric components other than knitting to shape, that the producer or entity controlling production can verify, plus a reasonable amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabric components to the port of exportation. (6) Year. (7) Entered. (b) Limitations on preferential treatment General. (i) The aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of all of those articles of that producer or that entity controlling production that are entered as articles described in § 10.243(a)(4) during the immediately preceding year was at least 75 percent of the aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that are entered as articles described in § 10.243(a)(4) during that year; or (ii) In a case in which the 75 percent requirement set forth in paragraph (b)(1)(i) of this section was not met during a year and therefore those articles of that producer or that entity controlling production were not eligible for preferential treatment during the following year, the aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of all of those articles of that producer or that entity controlling production that conform to the production standards set forth in § 10.243(a)(4) and that were entered during the immediately preceding year was at least 85 percent of the aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that conform to the production standards set forth in § 10.243(a)(4) and that were entered during that year; and (iii) In conjunction with the filing of the claim for preferential treatment under § 10.245, the importer records on the entry summary or warehouse withdrawal for consumption (CBP Form 7501, column 34), or its electronic equivalent, the distinct and unique identifier assigned by CBP to the applicable documentation prescribed under paragraph (c) of this section. (2) Rules of application General. (A) The articles in question must have been produced in the manner specified in § 10.243(a)(4) and the articles in question must be entered within the same year; (B) Articles that are exported to countries other than the United States and are never entered are not to be considered in determining compliance with the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section; (C) Articles that are entered under an HTSUS subheading other than the HTSUS subheading which pertains to articles described in § 10.243(a)(4) are not to be considered in determining compliance with the 75 percent standard specified in paragraph (b)(1)(i) of this section; (D) For purposes of determining compliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section, all articles that conform to the production standards set forth in § 10.243(a)(4) must be considered, regardless of the HTSUS subheading under which they were entered; (E) Fabric components and fabrics that constitute findings or trimmings are not to be considered in determining compliance with the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section; (F) Beginning October 1, 2003, in order for articles to be eligible for preferential treatment in a given year, a producer of, or entity controlling production of, those articles must have met the 75 percent standard specified in paragraph (b)(1)(i) of this section during the immediately preceding year. If articles of a producer or entity controlling production fail to meet the 75 percent standard specified in paragraph (b)(1)(i) of this section during a year, articles of that producer or entity controlling production: ( 1 ( 2 ( 3 (G) A new producer or new entity controlling production, that is, a producer or entity controlling production who did not produce or control production of articles that were entered as articles described in § 10.243(a)(4) during the immediately preceding year, must first establish compliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section as a prerequisite to preparation of the declaration of compliance referred to in paragraph (c) of this section; (H) A declaration of compliance prepared by a producer or by an entity controlling production must cover all production of that producer or all production that the entity controls for the year in question; (I) A producer would not prepare a declaration of compliance if all of its production is covered by a declaration of compliance prepared by an entity controlling production; (J) In the case of a producer, the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section and the declaration of compliance procedure under paragraph (c) of this section apply to all articles of that producer for the year in question, even if some but not all of that production is also covered by a declaration of compliance prepared by an entity controlling production; (K) The U.S. importer does not have to be the producer or the entity controlling production who prepared the declaration of compliance; and (L) The exclusion references regarding findings and trimmings in paragraph (b)(1)(i) and paragraph (b)(1)(ii) of this section apply to all findings and trimmings, whether or not they are of foreign origin. (ii) Examples. Example 1. An ATPDEA beneficiary country producer of articles that meet the production standards specified in § 10.243(a)(4) in the first year sends 50 percent of that production to ATPDEA region markets and the other 50 percent to the U.S. market; the cost of the fabrics formed in the United States equals 100 percent of the value of all of the fabric in the articles sent to the ATPDEA region and 60 percent of the value of all of the fabric in the articles sent to the United States. Although the cost of fabrics formed in the United States is more than 75 percent of the value of all of the fabric used in all of the articles produced, this producer could not prepare a valid declaration of compliance because the articles sent to the United States did not meet the minimum 75 percent standard. Example 2. A producer sends to the United States in the first year three shipments of articles that meet the description in § 10.243(a)(4); one of those shipments is entered under the HTSUS subheading that covers articles described in § 10.243(a)(4), the second shipment is entered under the HTSUS subheading that covers articles described in § 10.243(a)(7), and the third shipment is entered under subheading 9802.00.80, HTSUS. In determining whether the minimum 75 percent standard has been met in the first year for purposes of entry of articles under the HTSUS subheading that covers articles described in § 10.243(a)(4) during the following (that is, second) year, consideration must be restricted to the articles in the first shipment and therefore must not include the articles in the second and third shipments. Example 3. A producer in the second year begins production of articles that conform to the production standards specified in § 10.243(a)(4); some of those articles are entered in that year under HTSUS subheading 6212.10 and others under HTSUS subheading 9802.00.80 but none are entered in that year under the HTSUS subheading which pertains to articles described in § 10.243(a)(4) because the 75 percent standard had not been met in the preceding (that is, first) year. In this case the 85 percent standard applies, and all of the articles that were entered under the various HTSUS provisions in the second year must be taken into account in determining whether that 85 percent standard has been met. If the 85 percent was met in the aggregate for all of the articles entered in the second year, in the next (that is, third) year articles of that producer may receive preferential treatment under the HTSUS subheading which pertains to articles described in § 10.243(a)(4). Example 4. An entity controlling production of articles that meet the description in § 10.243(a)(4) buys for the U.S., Canadian and Mexican markets; the articles in each case are first sent to the United States where they are entered for consumption and then placed in a commercial warehouse from which they are shipped to various stores in the United States, Canada and Mexico. Notwithstanding the fact that some of the articles ultimately ended up in Canada or Mexico, a declaration of compliance prepared by the entity controlling production must cover all of the articles rather than only those that remained in the United States because all of those articles had been entered for consumption. Example 5. Fabric is cut and sewn in the United States with other U.S. materials to form cups which are joined together to form brassiere front subassemblies in the United States, and those front subassemblies are then placed in a warehouse in the United States where they are held until the following year; during that following year all of the front subassemblies are shipped to an ATPDEA beneficiary country where they are assembled with elastic strips for use as brassiere straps and labels produced in an Asian country and other fabrics, components or materials produced in the ATPDEA beneficiary country to form articles that meet the production standards specified in § 10.243(a)(4) and that are then shipped to the United States and entered during that same year. In determining whether the entered articles meet the minimum 75 or 85 percent standard, the fabric in the labels is to be disregarded entirely because the labels constitute findings or trimmings for purposes of this section, and all of the fabric in the front subassemblies is countable because it was all formed in the United States and used in the production of articles that were entered in the same year. Example 6. An ATPDEA beneficiary country producer's entire production of articles that meet the description in § 10.243(a)(4) is sent to a U.S. importer in two separate shipments, one in February and the other in June of the same calendar year; the articles shipped in February do not meet the minimum 75 percent standard, the articles shipped in June exceed the 85 percent standard, and the articles in the two shipments, taken together, do meet the 75 percent standard; the articles covered by the February shipment are entered for consumption on March 1 of that calendar year, and the articles covered by the June shipment are placed in a CBP bonded warehouse upon arrival and are subsequently withdrawn from warehouse for consumption on November 1 of that calendar year. The ATPDEA beneficiary country producer may not prepare a valid declaration of compliance covering the articles in the first shipment because those articles did not meet the minimum 75 percent standard and because those articles cannot be included with the articles of the second shipment on the same declaration of compliance since they were entered in a different year. However, the ATPDEA beneficiary country producer may prepare a valid declaration of compliance covering the articles in the second shipment because those articles did meet the requisite 85 percent standard which would apply for purposes of entry of articles in the following year. Example 7. A producer in the second year begins production of articles exclusively for the U.S. market that meet the production standards specified in § 10.243(a)(4), but the entered articles do not meet the requisite 85 percent standard until the third year. The producer's articles may not receive preferential treatment during the second year because there was no production (and thus there were no entered articles) in the immediately preceding (that is, first) year on which to assess compliance with the 75 percent standard. The producer's articles also may not receive preferential treatment during the third year because the 85 percent standard was not met in the immediately preceding (that is, second) year. However, the producer's articles are eligible for preferential treatment during the fourth year based on compliance with the 85 percent standard in the immediately preceding (that is, third) year. Example 8. An entity controlling production (Entity A) uses five ATPDEA beneficiary country producers (Producers 1-5), all of which produce only articles that meet the description in § 10.243(a)(4); Producers 1-4 send all of their production to the United States and Producer 5 sends 10 percent of its production to the United States and the rest to Europe; Producers 1-3 and Producer 5 produce only pursuant to contracts with Entity A, but Producer 4 also operates independently of Entity A by producing for several U.S. importers, one of which is an entity controlling production (Entity B) that also controls all of the production of articles of one other producer (Producer 6) which sends all of its production to the United States. A declaration of compliance prepared by Entity A must cover all of the articles of Producers 1-3 and the 10 percent of articles of Producer 5 that are sent to the United States and that portion of the articles of Producer 4 that are produced pursuant to the contract with Entity A, because Entity A controls the production of those articles. There is no need for Producers 1-3 and Producer 5 to prepare a declaration of compliance because they have no production that is not covered by a declaration of compliance prepared by an entity controlling production. A declaration of compliance prepared by Producer 4 would cover all of its production, that is, articles produced for Entity A, articles produced for Entity B, and articles produced independently for other U.S. importers; a declaration of compliance prepared by Entity B must cover that portion of the production of Producer 4 that it controls as well as all of the production of Producer 6 because Entity B also controls all of the production of Producer 6. Producer 6 would not prepare a declaration of compliance because all of its production is covered by the declaration of compliance prepared by Entity B. (c) Documentation Initial declaration of compliance. (2) Amended declaration of compliance. (i) The producer or the entity controlling production must file with the CBP office identified in paragraph (c)(4) of this section an amended declaration of compliance containing that final year-end information or other corrected information; or (ii) If that final year-end information or other corrected information demonstrates noncompliance with the applicable 75 or 85 percent requirement, the producer or the entity controlling production must in writing advise both the CBP office identified in paragraph (c)(4) of this section and each appropriate U.S. importer of that fact. (3) Form and preparation of declaration of compliance Form. Andean Trade Promotion and Drug Eradication Act Declaration of Compliance for Brassieres [19 CFR 10.243(a)(4) and 10.248] 1. Year beginning date: October 1, ________________________ Official U.S. CBP Use Only Year ending date: September 30, ________________________ Assigned number: ________________________ Assignment date:________________________ 2. Identity of preparer (producer or entity controlling production): Full name and address: Telephone number: ________________________ Facsimile number: ________________________ Importer identification number:____________ 3. If the preparer is an entity controlling production, provide the following for each producer: Full name and address: ________________________ Telephone number: ________________________ Facsimile number: ________________________ 4. Aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of brassieres that were entered during the year: ________________________ 5. Aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in brassieres that were entered during the year: ________________________ 6. I declare that the aggregate cost of fabric (exclusive of all findings and trimmings) formed in the United States was at least 75 percent (or 85 percent, if applicable under 19 CFR 10.248(b)(1)(ii)) of the aggregate declared customs value of the fabric contained in brassieres entered during the year. 7. Authorized signature:________________________ 8. Name and title (print or type):________________________ Date: (ii) Preparation. (A) In block 1, fill in the year commencing October 1 and ending September 30 of the calendar year during which the applicable 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section was met; (B) Block 2 should state the legal name and address (including country) of the preparer and should also include the preparer's importer identification number (see § 24.5 of this chapter), if the preparer has one; (C) Block 3 should state the legal name and address (including country) of the ATPDEA beneficiary country producer if that producer is not already identified in block 2. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers; (D) Blocks 4 and 5 apply only to articles that were entered during the year identified in block 1; and (E) In block 7, the signature must be that of an authorized officer, employee, agent or other person having knowledge of the relevant facts and the date must be the date on which the declaration of compliance was completed and signed. (4) Filing of declaration of compliance. (i) Must be completed either in the English language or in the language of the country in which the articles covered by the declaration were produced. If the declaration is completed in a language other than English, the producer or the entity controlling production must provide to CBP upon request a written English translation of the declaration; and (ii) Must be filed with the New York Strategic Trade Center, Customs and Border Protection, 1 Penn Plaza, New York, New York 10119. (d) Verification of declaration of compliance Verification procedure. (i) All records required to be made, kept, and made available to CBP by the importer, the producer, the entity controlling production, or any other person under part 163 of this chapter; (ii) Documentation and other information regarding all articles that meet the production standards specified in § 10.243(a)(4) that were exported to the United States and that were entered during the year in question, whether or not a claim for preferential treatment was made under § 10.245. Those records and other information include, but are not limited to, work orders and other production records, purchase orders, invoices, bills of lading and other shipping documents; (iii) Evidence to document the cost of fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work orders and other production records, and inventory control records; (iv) Evidence to document the cost or value of all fabric other than fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work orders and other production records, and inventory control records; and (v) Accounting books and documents to verify the records and information referred to in paragraphs (d)(1)(ii) through (d)(1)(iv) of this section. The verification of purchase orders, invoices and bills of lading will be accomplished through the review of a distinct audit trail. The audit trail documents must consist of a cash disbursement or purchase journal or equivalent records to establish the purchase of the fabric. The headings in each of these journals or other records must contain the date, vendor name, and amount paid for the fabric. The verification of production records and work orders will be accomplished through analysis of the inventory records of the producer or entity controlling production. The inventory records must reflect the production of the finished article which must be referenced to the original purchase order or lot number covering the fabric used in production. In the inventory production records, the inventory should show the opening balance of the inventory plus the purchases made during the accounting period and the inventory closing balance. (2) Notice of determination. Federal Register. Extension of ATPA Benefits to Tuna and Certain Other Non-Textile Articles Source: Sections 10.251 through 10.257 issued by T.D. 03-16, 68 FR 14497, Mar. 25, 2003; 68 FR 67349, Dec. 1, 2003, unless otherwise noted. § 10.251 Applicability. Title XXXI of Public Law 107-210 (116 Stat. 933), entitled the Andean Trade Promotion and Drug Eradication Act (ATPDEA), amended sections 202, 203, 204, and 208 of the Andean Trade Preference Act (the ATPA, 19 U.S.C. 3201-3206) to authorize the President to extend additional trade benefits to ATPA beneficiary countries that have been designated as ATPDEA beneficiary countries. Sections 204(b)(1) and (b)(4) of the ATPA (19 U.S.C. 3203(b)(1) and (b)(4)) provide for the preferential treatment of certain non-textile articles that were not entitled to duty-free treatment under the ATPA prior to enactment of the ATPDEA. The provisions of §§ 10.251-10.257 of this part set forth the legal requirements and procedures that apply for purposes of obtaining preferential treatment pursuant to ATPA sections 204(b)(1) and (b)(4). § 10.252 Definitions. When used in §§ 10.251 through 10.257, the following terms have the meanings indicated: ATPA. ATPDEA beneficiary country. Federal Register, ATPDEA beneficiary country vessel. (a) Which is registered or recorded in an ATPDEA beneficiary country; (b) Which sails under the flag of an ATPDEA beneficiary country; (c) Which is at least 75 percent owned by nationals of an ATPDEA beneficiary country or by a company having its principal place of business in an ATPDEA beneficiary country, of which the manager or managers, chairman of the board of directors or of the supervisory board, and the majority of the members of those boards are nationals of an ATPDEA beneficiary country and of which, in the case of a company, at least 50 percent of the capital is owned by an ATPDEA beneficiary country or by public bodies or nationals of an ATPDEA beneficiary country; (d) Of which the master and officers are nationals of an ATPDEA beneficiary country; and (e) Of which at least 75 percent of the crew are nationals of an ATPDEA beneficiary country. HTSUS. Preferential treatment. United States vessel. [T.D. 03-16, 68 FR 14497, Mar. 25, 2003; 68 FR 67349, Dec. 1, 2003, as amended by CBP Dec. 06-21, 71 FR 44583, Aug. 7, 2006] § 10.253 Articles eligible for preferential treatment. (a) General. (1) Tuna that is harvested by United States vessels or ATPDEA beneficiary country vessels, that is prepared or preserved in any manner, in an ATPDEA beneficiary country, in foil or other flexible airtight containers weighing with their contents not more than 6.8 kilograms each; and (2) Any of the following articles that the President has determined are not import-sensitive in the context of imports from ATPDEA beneficiary countries, provided that the article in question meets the country of origin and value content requirements set forth in paragraphs (c) and (d) of this section: (i) Footwear not designated on December 4, 1991, as eligible articles for the purpose of the Generalized System of Preferences (GSP) under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467); (ii) Petroleum, or any product derived from petroleum, provided for in headings 2709 and 2710 of the HTSUS; (iii) Watches and watch parts (including cases, bracelets, and straps), of whatever type including, but not limited to, mechanical, quartz digital or quartz analog, if those watches or watch parts contain any material which is the product of any country with respect to which HTSUS column 2 rates of duty apply; and (iv) Handbags, luggage, flat goods, work gloves, and leather wearing apparel that were not designated on August 5, 1983, as eligible articles for purposes of the GSP. (b) Imported directly defined. (1) Direct shipment from any ATPDEA beneficiary country to the United States without passing through the territory of any country that is not an ATPDEA beneficiary country; (2) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, the articles in the shipment do not enter into the commerce of any country that is not an ATPDEA beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon arrival in the United States are imported directly only if they: (i) Remained under the control of the customs authority of the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the producer's sales agent; and (iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition. (c) Country of origin criteria General. (i) Wholly the growth, product, or manufacture of an ATPDEA beneficiary country; or (ii) A new or different article of commerce which has been grown, produced, or manufactured in an ATPDEA beneficiary country. (2) Exceptions. (d) Value content requirement General. (2) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI beneficiary countries. (3) Materials produced in the United States. (4) Cost or value of materials “Materials produced in an ATPDEA beneficiary country or countries” defined. (A) Wholly the growth, product, or manufacture of an ATPDEA beneficiary country or two or more ATPDEA beneficiary countries; or (B) Substantially transformed in any ATPDEA beneficiary country or two or more ATPDEA beneficiary countries into a new or different article of commerce which is then used in any ATPDEA beneficiary country as defined in § 10.252 in the production or manufacture of a new or different article which is imported directly into the United States. For purposes of this paragraph (d)(4)(i)(B), no material will be considered to be substantially transformed into a new or different article of commerce by virtue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. The examples set forth in § 10.196(a), and the principles and examples set forth in § 10.195(a)(2), will apply for purposes of the corresponding context under paragraph (d)(4)(i) of this section. (ii) Failure to establish origin. (iii) Determination of cost or value of materials. ( 1 ( 2 ( 3 ( 4 (B) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of: ( 1 ( 2 ( 3 (5) Direct costs of processing operations Items included. (A) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; (B) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise; (C) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific merchandise; and (D) Costs of inspecting and testing the specific merchandise. (ii) Items not included. (A) Profit; and (B) General expenses of doing business which either are not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. (6) Articles wholly the growth, product, or manufacture of an ATPDEA beneficiary country. § 10.254 Certificate of Origin. A Certificate of Origin as specified in § 10.256 must be employed to certify that an article described in § 10.253(a) being exported from an ATPDEA beneficiary country to the United States qualifies for the preferential treatment referred to in § 10.251. The Certificate of Origin must be prepared in the ATPDEA beneficiary country by the producer or exporter or by the producer's or exporter's authorized agent. If the person preparing the Certificate of Origin is not the producer of the article, the person may complete and sign a Certificate on the basis of: (a) The person's reasonable reliance on the producer's written representation that the article qualifies for preferential treatment; or (b) A completed and signed Certificate of Origin for the article voluntarily provided to the person by the producer. [CBP Dec. 06-21, 71 FR 44583, Aug. 7, 2006] § 10.255 Filing of claim for preferential treatment. (a) Declaration. (b) Corrected declaration. § 10.256 Maintenance of records and submission of Certificate by importer. (a) Maintenance of records. (b) Submission of Certificate. (1) Must be on CBP Form 449, including privately-printed copies of that Form, or, as an alternative to CBP Form 449, in an approved computerized format or other medium or format as is approved by the Office of International Trade, U.S. Customs and Border Protection, Washington, DC 20229. An alternative format must contain the same information and certification set forth on CBP Form 449; (2) Must be signed by the producer or exporter or by the producer's or exporter's authorized agent having knowledge of the relevant facts; (3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and (4) May be applicable to: (i) A single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (ii) Multiple importations of identical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph, “identical articles” means articles that are the same in all material respects, including physical characteristics, quality, and reputation. (c) Correction and nonacceptance of Certificate. (d) Certificate not required General. (i) An importation of an article for which the Center director has in writing waived the requirement for a Certificate of Origin because the Center director is otherwise satisfied that the article qualifies for preferential treatment; (ii) A non-commercial importation of an article; or (iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the Center director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement: I hereby certify that the article covered by this shipment qualifies for preferential tariff treatment under the ATPDEA. Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent __________________________________ Name __________________________________ Title __________________________________ Address __________________________________ Signature and Date (2) Exception. [T.D. 03-16, 68 FR 14497, Mar. 25, 2003; 68 FR 67349, Dec. 1, 2003, as amended by CBP Dec. 06-21, 71 FR 44583, Aug. 7, 2006] § 10.257 Verification and justification of claim for preferential treatment. (a) Verification by Customs. (1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter; (2) Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and (3) Evidence to document the use of U.S. or ATPDEA beneficiary country materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents. (b) Importer requirements. (1) Must have records that explain how the importer came to the conclusion that the article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it meets the country of origin and value content requirements set forth in § 10.253(c) and (d). A properly completed Certificate of Origin in the form prescribed in § 10.254(b) is a record that would serve this purpose; (2) Must establish and implement internal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in paragraph (b)(1) of this section; (3) Must have shipping papers that show how the article moved from the ATPDEA beneficiary country to the United States. If the imported article was shipped through a country other than an ATPDEA beneficiary country and the invoices and other documents from the ATPDEA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.253(b)(3)(i) through (iii) were met; and (4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this section justify the importer's claim for preferential treatment. Subpart G—United States-Canada Free Trade Agreement Source: Sections 10.301 through 10.311 issued by T.D. 89-3, 53 FR 51766, Dec. 23, 1988, unless otherwise noted. § 10.301 Scope and applicability. The provisions of §§ 10.302 through 10.311 of this part relate to the procedures for obtaining duty preferences on imported goods under the United States-Canada Free-Trade Agreement (the Agreement) entered into on January 2, 1988, and the United States-Canada Free-Trade Agreement Implementation Act of 1988 (102 Stat. 1851). The United States and Canada agreed to suspend operation of the Agreement with effect from January 1, 1994, to coincide with the entry into force of the North American Free Trade Agreement ( see see [CBP Dec. 24-18, 90 FR 6480, Jan. 17, 2025] § 10.302 Eligibility criteria in general. Subject to the more specific explanations of the criteria in §§ 10.303 and 10.305 of this part, goods classifiable under an HTSUS heading or subheading for which the symbol “CA” appears in the “special” column are eligible for a preference if: (a) Originating goods. (b) Direct shipment required. § 10.303 Originating goods. (a) General. (1) Wholly of Canadian or United States origin. (2) Transformed with a change in classification. (3) Transformed without a change in classification. (i) The value of originating materials and the direct cost of assembling in Canada or the United States, or both, as defined in § 10.305 constitute not less than 50 percent of the value of the goods when exported to the United States; (ii) The assembled goods are not subsequently processed or further assembled in a third country; and (iii) The goods satisfy the requirement in § 10.306. (b) Originating materials. (c) Change in classification. (d) Articles of feather. [T.D. 92-8, 57 FR 2453, Jan. 22, 1992] § 10.304 Exclusions. (a) Changes based on simple processing. (b) Other excluded processing. § 10.305 Value content requirement. (a) Direct cost of processing or assembling Definition. (i) The cost of all labor, including benefits and on-the-job training, labor provided in connection with supervision, quality control, shipping, receiving, storage, packaging, management at the location of the process or assembly, and other like labor, whether provided by employees or independent contractors; (ii) The cost of inspecting and testing the goods; (iii) The cost of energy, fuel, dies, molds, tooling, and the depreciation and maintenance of machinery and equipment, without regard to whether they originate within the territory of the United States or Canada; (iv) Development, design, and engineering costs; (v) Rent, mortgage interest, depreciation on buildings, property insurance premiums, maintenance, taxes and the cost of utilities for real property used in the production of the goods; and (vi) Royalty, licensing, or other like payments for the right to the goods. (2) Exclusions from direct costs of processing or assembling. (i) Costs relating to the general expense of doing business, such as the cost of providing executive, financial, sales, advertising, marketing, accounting and legal services, and insurance; (ii) Brokerage charges relating to the importation and exportation of goods; (iii) Costs for telephone, mail, and other means of communication; (iv) Packing costs for exporting the goods; (v) Royalty payments related to a licensing agreement to distribute or sell the goods; (vi) Rent, mortgage interest, depreciation on buildings, property insurance premiums, maintenance, taxes, and the cost of utilities for real property used by personnel charged with administrative functions; and (vii) Profit on the goods. (3) Interpretation Indirect materials. (ii) Directly incurred. (iii) Labor costs. (iv) Interest expense. Bona fide (b) Value of originating materials Definition. (i) The price paid by the producer of exported goods for materials originating in either the United States or Canada, or both, or for materials imported from a third country used or consumed in the production of such originating materials; and (ii) When not included in that price, the following costs related thereto: (A) Freight, insurance, packing and all other costs incurred in transporting any of the materials referred to in paragraph (b)(1)(i) of this section to the location of the producer; (B) Duties, taxes and brokerage fees on such materials paid in the United States, or Canada, or both; (C) The cost of waste or spoilage resulting from the use or consumption of such materials, less the value of renewable scrap or by-product; and (D) The value of goods and services relating to such materials determined in accordance with subparagraph 1(b) of Article 8 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade. (2) Directly attributable. (3) Interpretation Price paid. Example 1. Non-originating materials are sold by Company X (a foreign corporation located outside the United States or Canada) to Company Y (a Canadian corporation) for $100; Company X also sold identical materials to Company Z (a U.S. corporation) for $200 which was the price Company Z had paid to Company X for similar materials prior to implementation of the Agreement; and those non-originating materials sold by Company X to Company Y are then incorporated by Company Y into goods exported to the United States. In this case the $100 price paid by Company Y to Company X constitutes the value of those materials for purposes of the value-content requirement. Example 2. Company X purchased materials for $100, added a four percent mark-up to the price paid to defray purchasing expenses, and then sold the marked-up materials to Company Y (a Canadian corporation) which incorporated the materials in goods exported to the United States. In this case the $104 price paid by Company Y to Company X constitutes the value of the materials for purposes of the value-content requirement. Example 3. Company X (a foreign corporation located outside the United States) sold non-originating materials to Company Y (a U.S. corporation) for $200, and Company Y then sold those materials for $100 to Company Z (a Canadian corporation) which incorporated the materials in goods which were imported into the United States by Company P (the U.S. parent company of Company Y). In this case, in accordance with paragraph (b)(1)(ii)(D) of this section, $100 would be added to the price paid by Company Z for purposes of the value-content requirement because the materials were sold at a reduced cost within the meaning of subparagraph 1(b) of Article 8 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade. (ii) Originating materials for which no price paid. Example 1. If an automobile producer in the United States or Canada fabricates body panels wholly from third country steel coil, those body panels can qualify as originating materials without having to satisfy a value-content requirement because steel coil is classified in chapter 72 of the Harmonized System and body panels are classified in chapter 87 and the change in classification rules in chapter 87 do not incorporate a value-content requirement in this context. Thus, the producer can claim the body panels fabricated from the third country steel as originating materials for purposes of the value-content requirement applicable to the finished automobile which will be exported to the United States. The value of those originating materials is the price paid for the steel coil imported from the third country and used or consumed in the production of the body panels. Example 2. An automobile exporter in Canada purchases and imports body panels fabricated in a third country in order to join them with vertically (locally) fabricated body panels to form an automobile body. If the body qualifies as an originating material, the exporter has two options. Under the first option, the exporter can claim the body as originating material, in which case the value of originating material is the price paid for the foreign body panels. Under the second option, the exporter may elect not to claim the body as originating material; but, rather, the exporter may claim as originating material any domestic steel coil used in producing the vertically (locally) fabricated body panels, in which case the value of originating material is the price paid for the domestic steel coil. (c) Value of goods when exported. (1) The price paid by the producer for all materials, whether or not the materials originate in the United States, or Canada, or both, and, when not included in the price paid for the materials, the following costs related thereto: (i) Freight, insurance, packing, and all other costs incurred in transporting all materials to the location of the producer; (ii) Duties, taxes, and brokerage fees on all materials paid in the United States, or Canada, or both; (iii) The cost of waste or spoilage resulting from the use or consumption of such materials, less the value of renewable scrap or by-product; and (iv) The value of goods and services relating to all materials determined in accordance with subparagraph 1(b) of Article 8 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs Trade; and (2) The direct cost of processing or the direct cost of assembling the goods. [T.D. 92-8, 57 FR 2453, Jan. 22, 1992; 57 FR 4793, Feb. 7, 1992, as amended by T.D. 92-98, 57 FR 46504, Oct. 9, 1992] § 10.306 Direct shipment to the United States. Goods shall be considered as directly shipped to the United States from Canada for the purpose of eligibility for preferences under the Agreement only under the following circumstances: (a) Through shipment. (b) Shipment through a third country. (1) The goods did not enter the commerce of any third country; (2) The goods did not undergo any operation other than unloading, reloading, or any operation necessary to transport them to the United States or to preserve them in good condition; and (3) All shipping and export documents show the United States as the final destination. § 10.307 Documentation. (a) Claims for a preference. (b) Failure to claim a preference. (c) Documentation showing origin. (d) Exporter's Certificate of Origin General. (2) Blanket certifications. (e) Exceptions to documentation requirements. (1) Exception for informal entries. (i) Commercial goods which qualify for informal entry. I hereby certify that the goods described herein are eligible for a preference based upon the rules of origin enumerated in the United States-Canada Free-Trade Agreement. Check One: ( ) Manufacturer ( ) Supplier ( ) Exporter Signature Title Date: (ii) Noncommercial goods which qualify for informal entry. (2) Waiver of evidence of direct shipment. [T.D. 89-3, 53 FR 51766, Dec. 23, 1988, as amended by T.D. 92-8, 57 FR 2455, Jan. 22, 1992] § 10.308 Records retention. (a) Importer. (b) Exporter. § 10.309 Verification of documentation. Any evidence of country of origin or of direct shipment submitted in support of a preference under the Agreement shall be subject to such verification as the appropriate Customs official may deem necessary. If the U.S. importer or U.S. exporter or their agent does not provide the information requested by the appropriate Customs officer, the Center director may refuse to grant the claim for preference, in addition to other available sanctions. § 10.310 Election to average for motor vehicles. (a) Election. (b) Effect of election. (c) Election in lieu of certificate of origin. [T.D. 89-3, 53 FR 51766, Dec. 23, 1988, as amended by T.D. 92-8, 57 FR 2455, Jan. 22, 1992] § 10.311 Documentation for election to average for motor vehicles. A manufacturer who elects to average for motor vehicles shall submit a declaration of election to average, quarterly reports, and an annual report in the form and manner as follows: (a) Declaration of election. (b) Quarterly Report. (c) Annual Report. Subpart H—United States-Chile Free Trade Agreement Source: CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, unless otherwise noted. General Provisions § 10.401 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Chile Free Trade Agreement (the US-CFTA) signed on June 6, 2003, and under the United States-Chile Free Trade Agreement Implementation Act (the Act; 117 Stat. 909). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the US-CFTA and the Act are contained in parts 12, 24, 162, and 163 of this chapter. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76131, Dec. 20, 2006] § 10.402 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Certification. (b) Claim of origin. (c) Claim for preferential tariff treatment. (d) Customs authority. (e) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (f) Days. (g) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994; in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty; and (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (h) Enterprise. (i) GATT 1994. General Agreement on Tariffs and Trade 1994, WTO Agreement; (j) Goods. (k) Harmonized System. Harmonized Commodity Description and Coding System, (l) Heading. (m) HTSUS. Harmonized Tariff Schedule of the United States (n) Identical goods. (o) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment and buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the goods; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production; (p) Originating. (q) Party. (r) Person. (s) Preferential tariff treatment. (t) Subheading. (u) Tariff preference level. (v) Textile or apparel good. (w) Territory. (1) With respect to Chile, the land, maritime and air space under its sovereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; and (2) With respect to the United States, (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico, (ii) The foreign trade zones located in the United States and Puerto Rico, and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (x) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76131, Dec. 20, 2006] Import Requirements § 10.410 Filing of claim for preferential tariff treatment upon importation. (a) Declaration. (b) Corrected declaration. see [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76131, Dec. 20, 2006] § 10.411 Certification of origin or other information. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone and e-mail address of the importer of record of the good (if known); (ii) The legal name, address, telephone and e-mail address of the exporter of the good (if different from the producer); (iii) The legal name, address, telephone and e-mail address of the producer of the good (if known); (iv) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (v) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 26(n), HTSUS; (vi) The preference criterion as set forth in paragraph (f) of this section. (b) Statement. “I Certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain, and present upon request, documentation necessary to support this certification, and to inform, in writing, all persons to whom the certification was given of any changes that could affect the accuracy or validity of this certification; and The goods originated in the territory of one or more of the parties, and comply with the origin requirements specified for those goods in the United States-Chile Free Trade Agreement; there has been no further production or any other operation outside the territories of the parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the United States; and This document consists of ____ pages, including all attachments.” (c) Responsible official or agent. (1) A certification that the good qualifies as originating issued by the producer; or (2) Knowledge of the exporter or importer that the good qualifies as an originating good. (d) Language. (e) Applicability of certification. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months. In the case of multiple shipments of identical goods, the certification must specify the blanket period in “mm/dd/yyyy to mm/dd/yyyy” format. (f) Preference criteria. (1) Preference criterion “A”, refers to a good that is wholly obtained or produced entirely in the territory of Chile or of the United States, or both (see General Note 26(b)(i), HTSUS); (2) Preference criterion “B”, refers to a good that is produced entirely in the territory of Chile or the United States, or both ( see (i) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 26(n), HTSUS, or (ii) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 26(n), HTSUS; (3) Preference criterion “C” refers to a good that is produced entirely in the territory of Chile or the United States, or both, exclusively from originating materials (see General Note 26(b)(iii), HTSUS). [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76132, Dec. 20, 2006; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.412 Importer obligations. (a) General. (b) Compliance. (1) Must have records that explain how the importer came to the conclusion that the good qualifies for preferential tariff treatment. Those records must include documents that support a claim that the article in question qualifies for preferential tariff treatment because it meets the applicable rules of origin set forth in General Note 26, HTSUS, and in this subpart. Those records may include a properly completed certification or other information as set forth in § 10.411 of this subpart; and (2) May be required to demonstrate that the conditions set forth in § 10.463 of this subpart were met if the imported article was shipped through an intermediate country. (c) Information provided by exporter or producer. see [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76132, Dec. 20, 2006] § 10.413 Validity of certification. A certification that is completed, signed and dated in accordance with the requirements listed in § 10.411 of this subpart will be accepted by CBP as valid for four years from the date on which the certification was signed. If the Center director determines that a certification is illegible or defective or has not been completed in accordance with § 10.411 of this subpart, the importer will be given a period of not less than five business days to submit a corrected certification. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76132, Dec. 20, 2006] § 10.414 Certification or other information not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation of a good whose value does not exceed U.S. $2,500, or the equivalent amount in Chilean currency. (b) Exception. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76132, Dec. 20, 2006] § 10.415 Maintenance of records. (a) General. (1) The purchase of, cost of, value of, and payment for, the good; (2) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and, (3) Where appropriate, the production of the good in the form in which the good was exported. (b) Method of maintenance. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.416 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) Effect of noncompliance. (b) Failure to provide documentation regarding transshipment. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] Tariff Preference Level § 10.420 Filing of claim for tariff preference level. A cotton or man-made fiber fabric or apparel good described in § 10.421 of this subpart that does not qualify as an originating good under § 10.451 of this subpart may nevertheless be entitled to preferential tariff treatment under the US-CFTA under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9911.99.20 for a good described in § 10.421(a) or (b) of this subpart or 9911.99.40 for a good described in § 10.421(c) of this subpart) immediately above the applicable subheading in Chapter 52 through 62 of the HTSUS under which each non-originating cotton or man-made fiber fabric or apparel good is classified. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.421 Goods eligible for tariff preference claims. The following goods are eligible for a TPL claim filed under § 10.420 of this subpart: (a) Woven fabrics. (b) Cotton or man-made fabric goods. 1 1 (c) Cotton or man-made apparel goods. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.422 Submission of certificate of eligibility. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone and e-mail address of the importer of record of the good; (ii) The legal name and address of the responsible official or authorized agent of the importer signing the certificate (if different from the importer of record), and that person's telephone and e-mail address, if available; (iii) The legal name, address, telephone and e-mail address of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone and e-mail address of the producer of the good (if known); (v) A description of the good, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (vi) The HTSUS tariff classification of the good, to six or more digits, as well as the applicable subheading in Chapter 99 of the HTSUS (9911.99.20 or 9911.99.40); (vii) For a single shipment, the commercial invoice number; (viii) For multiple shipments of identical goods, the blanket period in “mm/dd/yyyy to mm/dd/yyyy” format (12-month maximum); and (3) Must include a statement, in substantially the following form: “I Certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support this certificate, and to inform, in writing, all persons to whom the certificate was given of any changes that could affect the accuracy or validity of this certificate; and The goods were produced in the territory of one or more of the parties, and comply with the preference requirements specified for those goods in the United States-Chile Free Trade Agreement and Chapter 99, subchapter XI of the HTSUS. There has been no further production or any other operation outside the territories of the parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the United States; and This document consists of ____ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Applicability of certificate of eligibility. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certificate. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.423 Certificate of eligibility not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation of a good whose value does not exceed U.S. $2,500, or the equivalent amount in Chilean currency. (b) Exception. § 10.424 Effect of noncompliance; failure to provide documentation regarding transshipment of non-originating cotton or man-made fiber fabric or apparel goods. (a) Effect of noncompliance. (b) Failure to provide documentation regarding transshipment. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.425 Transit and transshipment of non-originating cotton or man-made fiber fabric or apparel goods. (a) General. (b) Documentary evidence. Export Requirements § 10.430 Export requirements. (a) Submission of certification to CBP. (b) Notification of errors in certification. (c) Maintenance of records General. (i) The purchase of, cost of, value of, and payment for, the good; (ii) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and (iii) Where appropriate, the production of the good in the form in which the good was exported. (2) Method of maintenance. (3) Availability of records. § 10.431 Failure to comply with requirements. The Center director may apply such measures as the circumstances may warrant where an exporter or a producer in the United States fails to comply with any requirement of this part. Such measures may include the imposition of penalties pursuant to 19 U.S.C. 1508(g) for failure to retain records required to be maintained under § 10.430. Post-Importation Duty Refund Claims § 10.440 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.441 of this subpart. Subject to the provisions of § 10.416 of this subpart, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.442(c) of this part. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.441 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written declaration stating that the good qualified as an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) Subject to § 10.413 of this subpart, a copy of a certification of origin or other information demonstrating that the good qualifies for preferential tariff treatment; (3) A written statement indicating whether or not the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identification number and address and must specify the date on which the documentation was provided; and (4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.442 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] Rules of Origin § 10.450 Definitions. For purposes of §§ 10.450 through 10.463 of this subpart: (a) Adjusted value. (b) Exporter. (c) Fungible goods or materials. (d) Generally Accepted Accounting Principles. (e) Good. (f) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. (1) Mineral goods extracted in the territory of one or both of the Parties; (2) Vegetable goods, as such goods are defined in the Harmonized System, harvested in the territory of one or both of the Parties; (3) Live animals born and raised in the territory of one or both of the Parties; (4) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the Parties; (5) Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag; (6) Goods produced on board factory ships from the goods referred to in paragraph (f)(5) provided such factory ships are registered or recorded with that Party and fly its flag; (7) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed; (8) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (9) Waste and scrap derived from: (i) Production in the territory of one or both of the Parties, or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (10) Recovered goods derived in the territory of a Party from used goods, and utilized in the Party's territory in the production of remanufactured goods; and (11) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (f)(1) through (f)(10) of this section, or from their derivatives, at any stage of production; (g) Importer. (h) Issued. (i) Location of the producer. (j) Material. (k) Non-originating good. (l) Non-originating material. (m) Packing materials and containers for shipment. (n) Producer. (o) Production. (p) Recovered goods. (1) The complete disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition by one or more of the following processes: welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding in order for such parts to be assembled with other parts, including other recovered parts in the production of a remanufactured good of Annex 4.18, US-CFTA; (q) Remanufactured goods. (1) Are entirely or partially comprised of recovered goods; (2) Have the same life expectancy and meet the same performance standards as new goods; and (3) Enjoy the same factory warranty as such new goods; and (r) Self-produced material. (s) Value. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.451 Originating goods. A good imported into the customs territory of the United States will be considered an originating good under the US-CFTA only if: (a) The good is wholly obtained or produced entirely in the territory of Chile or of the United States, or both; or (b) The good is produced entirely in the territory of Chile or of the United States, or both, satisfies all other applicable requirements of this subpart, and (1) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 26(n), HTSUS, and (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 26(n), HTSUS; or (c) The good is produced entirely in the territory of Chile or the United States, or both, exclusively from originating materials. § 10.452 Exclusions. A good will not be considered to be an originating good and a material will not be considered to be an originating material by virtue of having undergone: (a) Simple combining or packaging operations; or (b) Mere dilution with water or with another substance that does not materially alter the characteristics of the good or material. § 10.453 Treatment of textile and apparel sets. Notwithstanding the specific rules specified in General Note 26(n), HTSUS, textile and apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be regarded as originating goods unless each of the goods in the set is an originating good or the non-originating goods in the set do not exceed 10 percent of the adjusted value of the set. § 10.454 Regional value content. Where General Note 26, subdivision (n), HTSUS, sets forth a rule that specifies a regional value content test for a good, the regional value content of such good may be calculated, at the choice of the person claiming the tariff treatment authorized by this note for such good, on the basis of the build-down method or the build-up method described in this section, unless otherwise specified in the note. (a) Build-down method. (b) Build-up method. § 10.455 Value of materials. (a) Calculating the regional value content. de minimis (1) In the case of a material imported by the producer of the good, the adjusted value of the material with respect to that importation; (2) In the case of a material acquired in the territory where the good is produced, except for a material to which paragraph (a)(3) of this section applies, the producer's price actually paid or payable for the material; (3) In the case of a material provided to the producer without charge, or at a price reflecting a discount or similar reduction, the sum of— (i) All expenses incurred in the growth, production or manufacture of the material, including general expenses, and (ii) A reasonable amount for profit; or (4) In the case of a material that is self-produced, the sum of— (i) All expenses incurred in the production of the material, including general expenses, and (ii) A reasonable amount for profit. (b) Permissible additions to, and deductions from, the value of materials. (1) For originating materials, the following expenses, if not included under paragraph (a) of this section, may be added to the value of the originating material: (i) The costs of freight, insurance, packing and all other costs incurred in transporting the material to the location of the producer; (ii) Duties, taxes and customs brokerage fees on the material paid in the territory of Chile or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and (2) For non-originating materials, if included under paragraph (a) of this section, the following expenses may be deducted from the value of the non-originating material: (i) The costs of freight, insurance, packing and all other costs incurred in transporting the material to the location of the producer; (ii) Duties, taxes and customs brokerage fees on the material paid in the territory of Chile or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of Chile or of the United States. (c) Accounting method. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76133, Dec. 20, 2006] § 10.456 Accessories, spare parts or tools. Accessories, spare parts or tools that form part of the good's standard accessories, spare parts or tools and are delivered with the good will be treated as a material used in the production of the good, if— (a) The accessories, spare parts or tools are classified with and not invoiced separately from the good; and (b) The quantities and value of the accessories, spare parts or tools are customary for the good. § 10.457 Fungible goods and materials. (a) A person claiming preferential tariff treatment under the US-CFTA for a good may claim that a fungible good or material is originating either based on the physical segregation of each fungible good or material or by using an inventory management method. For purposes of this subpart, the term “inventory management method” means— (1) Averaging, (2) “Last-in, first-out,” (3) “First-in, first-out,” or (4) Any other method that is recognized in the generally accepted accounting principles of the Party in which the production is performed (whether Chile or the United States) or otherwise accepted by that Party. (b) A person selecting an inventory management method under paragraph (a) of this section for particular fungible goods or materials must continue to use that method for those fungible goods or materials throughout the fiscal year of that person. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] § 10.458 Accumulation. (a) Originating goods or materials of Chile or the United States that are incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party for purposes of determining the eligibility of the goods or materials for preferential tariff treatment under the US-CFTA. (b) A good that is produced in the territory of Chile, the United States, or both, by one or more producers, will be considered as an originating good if the good satisfies the applicable requirements of § 10.451 and General Note 26, HTSUS. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] § 10.459 De minimis. (a) Except as provided in paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to General Note 26(n), HTSUS, will nonetheless be considered to be an originating good if— (1) The value of all non-originating materials that are used in the production of the good and do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of such non-originating materials is included in calculating the value of non-originating materials for any applicable regional value-content requirement under this note; and (3) The good meets all other applicable requirements of General Note 26(n), HTSUS. (b) Paragraph (a) of this section does not apply to: (1) A non-originating material provided for in Chapter 4 of the Harmonized System, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheadings 1901.90 or 2106.90 of the Harmonized System, that is used in the production of a good provided for in Chapter 4 of the Harmonized System; (2) A non-originating material provided for in Chapter 4 of the Harmonized System, or non-originating dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 of the Harmonized System, that are used in the production of the following goods: infant preparations containing over 10 percent in weight of milk solids provided for in subheading 1901.10 of the Harmonized System; mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20 of the Harmonized System; dairy preparations containing over 10 percent by weight of milk solids provided for in subheadings 1901.90 or 2106.90 of the Harmonized System; goods provided for in heading 2105 of the Harmonized System; beverages containing milk provided for in subheading 2202.90 of the Harmonized System; or animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90 of the Harmonized System; (3) A non-originating material provided for in heading 0805 of the Harmonized System or subheadings 2009.11 through 2009.30 of the Harmonized System that is used in the production of a good provided for in subheadings 2009.11 through 2009.30 of the Harmonized System, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheadings 2106.90 or 2202.90 of the Harmonized System; (4) A non-originating material provided for in Chapter 15 of the Harmonized System that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514, or 1515 of the Harmonized System; (5) A non-originating material provided for in heading 1701 of the Harmonized System that is used in the production of a good provided for in headings 1701 through 1703 of the Harmonized System; (6) A non-originating material provided for in Chapter 17 or in heading 1805 of the Harmonized System that is used in the production of a good provided for in subheading 1806.10 of the Harmonized System; (7) A non-originating material provided for in headings 2203 through 2208 of the Harmonized System that is used in the production of a good provided for in heading 2207 or 2208 of the Harmonized System; and (8) A non-originating material used in the production of a good provided for in Chapters 1 through 21 of the Harmonized System unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this section. (c) A textile or apparel good provided for in Chapters 50 through 63 of the Harmonized System that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 26(n), HTSUS, shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than seven percent of the total weight of that component. A good containing elastomeric yarns in the component of the good that determines the tariff classification of the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of a Party. For purposes of this paragraph, if a good is a fiber, yarn or fabric, the component of the good that determines the tariff classification of the good is all of the fibers in the yarn, fabric or group of fibers. § 10.460 Indirect materials. An indirect material, as defined in § 10.402(o), will be considered to be an originating material without regard to where it is produced. Example. Chilean Producer C produces good C using non-originating material A. Producer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.451(b)(1) and General Note 26(n), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material A must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] § 10.461 Retail packaging materials and containers. Packaging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential tariff treatment under the US-CFTA is claimed, will be disregarded in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in General Note 26(n), HTSUS. If the good is subject to a regional value content requirement, the value of such packaging materials and containers will be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good. Example 1. Chilean Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.455(a)(1), the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV-VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, but the blister packages are originating. In this case, the adjusted value of the originating blister packages would not be included as part of the VNM of good C under the build-down method. However, if the United States importer had used the build-up method, RVC = (VOM/AV) × 100 ( see [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] § 10.462 Packing materials and containers for shipment. (a) Packing materials and containers for shipment, as defined in § 10.450(m), are to be disregarded in determining whether the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in General Note 26(n), HTSUS. Accordingly, such materials and containers do not have to undergo the applicable change in tariff classification even if they are non-originating. (b) Packing materials and containers for shipment, as defined in § 10.450(m), are to be disregarded in determining the regional value content of a good imported into the United States. Accordingly, in applying either the build-down or build-up method for determining the regional value content of the good imported into the United States, the value of such packing materials and containers for shipment (whether originating or non-originating) is disregarded and not included in AV, adjusted value, VNM, value of non-originating materials, or VOM, value of originating materials. Example. Chilean Producer A produces good C. Producer A ships good C to the United States in a shipping container which it purchased from Company B in Chile. The shipping container is originating. The value of the shipping container determined under section § 10.455(a)(2) is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.463 Transit and transshipment. (a) General. (b) Documentary evidence. Origin Verifications and Determinations § 10.470 Verification and justification of claim for preferential tariff treatment. (a) Verification. (1) All records required to be made, kept, and made available to CBP by the importer or any other person under part 163 of this chapter; (2) Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, supporting accounting and financial records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and (3) Evidence that documents the use of U.S. or Chilean materials in the production of the article subject to the verification, such as purchase orders, invoices, bills of lading and other shipping documents, customs import and clearance documents, and bills of material and inventory records. (b) Applicable accounting principles. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.471 Special rule for verifications in Chile of U.S. imports of textile and apparel products. (a) Procedures to determine whether a claim of origin is accurate. (b) Procedures to determine compliance with applicable customs laws and regulations of the U.S. (c) Assistance by CBP to Chilean authorities. (d) Treatment of documents and information provided to CBP. (e) Notification to Chile. (f) Retention of authority by CBP. § 10.472 Verification in the United States of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate. (b) Procedures to determine compliance with applicable customs laws and regulations of Chile. (c) Visits by CBP. (d) Initiation of verification by CBP. (e) Treatment of documents and information. § 10.473 Issuance of negative origin determinations. If CBP determines, as a result of an origin verification initiated under this subpart, that the good which is the subject of the verification does not qualify as an originating good, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; (c) With specific reference to the rules applicable to originating goods as set forth in General Note 26, HTSUS, and in §§ 10.450 through 10.463 of this subpart, the legal basis for the determination; and (d) A notice of intent to deny preferential tariff treatment on the good which is the subject of the determination. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] § 10.474 Repeated false or unsupported preference claims. Where verification or other information reveals indications of a pattern of conduct by an importer of false or unsupported representations that a good imported into the United States qualifies as originating, CBP may deny subsequent claims for preferential tariff treatment on identical goods imported by that person until compliance with the rules applicable to originating goods as set forth in General Note 26, HTSUS is established to the satisfaction of CBP. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] Penalties § 10.480 General. Except as otherwise provided in this subpart, all criminal, civil or administrative penalties which may be imposed on U.S. importers, exporters and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters and producers for violations of the laws and regulations relating to the US-CFTA. § 10.481 Corrected declaration by importers. A U.S. importer who makes a corrected declaration under § 10.410(b) will not be subject to civil or administrative penalties for having made an incorrect declaration, provided that the corrected declaration was voluntarily made. § 10.482 Corrected certifications of origin by exporters or producers. Civil or administrative penalties provided for under the U.S. customs laws and regulations will not be imposed on an exporter or producer in the United States who voluntarily provides written notification pursuant to § 10.430(b) with respect to the making of an incorrect certification. § 10.483 Framework for correcting declarations and certifications. (a) “Voluntarily” defined. (1) Done before the commencement of a formal investigation; or (2) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or (3) Done within 30 calendar days after either the U.S. importer, exporter or producer had reason to believe that the declaration or certification was not correct; and is (4) Accompanied by a written statement setting forth the information specified in paragraph (c) of this section; and (5) In the case of a corrected declaration, accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (e) of this section. (b) Cases involving fraud. (c) Statement. (1) Identifies the class or kind of good to which the incorrect declaration or certification relates; (2) In the case of a corrected declaration, identifies each affected import transaction, including each port of importation and the approximate date of each importation, and in the case of a notification of an incorrect certification, identifies each affected exportation transaction, including each port of exportation and the approximate date of each exportation. A U.S. producer who provides written notification that certain information in a certification of origin is incorrect and who is unable to identify the specific export transactions under this paragraph must provide as much information concerning those transactions as the producer, by the exercise of good faith and due diligence, is able to obtain; (3) Specifies the nature of the incorrect statements or omissions regarding the declaration or certification; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the declaration or certification, and states that the person will provide any additional pertinent information or data which is unknown at the time of making the corrected declaration or certification within 30 calendar days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Substantial compliance. (1) CBP is satisfied that the information was provided before the commencement of a formal investigation; and (2) The information provided includes, orally or in writing, substantially the same information as that specified in paragraph (c) of this section. (e) Tender of actual loss of duties. (f) Applicability of prior disclosure provisions. [CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006] Goods Returned After Repair or Alteration § 10.490 Goods re-entered after repair or alteration in Chile. (a) General. (b) Goods not eligible for treatment. (c) Documentation. Subpart I—United States-Singapore Free Trade Agreement Source: CBP Dec. 07-28, 72 FR 31995, June 11, 2007, unless otherwise noted. General Provisions § 10.501 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Singapore Free Trade Agreement (the SFTA) signed on May 6, 2003, and under the United States-Singapore Free Trade Agreement Implementation Act (the Act; 117 Stat. 948). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the SFTA and the Act are contained in parts 24, 162, and 163 of this chapter. § 10.502 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of the like domestic good or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's domestic law; (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; or (4) Duty imposed pursuant to Article 5 of the WTO Agreement on Agriculture. (c) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (d) Days. (e) Enterprise. (f) GATT 1994. General Agreement on Tariffs and Trade 1994 WTO Agreement (g) Harmonized System. Harmonized Commodity Description and Coding System (h) Heading. (i) HTSUS. Harmonized Tariff Schedule of the United States (j) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment and buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production; (k) Originating. (l) Party. (m) Person. (n) Preferential tariff treatment. (o) Subheading. (p) Tariff preference level. (q) Textile or apparel good. (r) Territory. (1) With respect to Singapore, its land territory, internal waters and territorial sea as well as the maritime zones beyond the territorial sea, including the seabed and subsoil over which the Republic of Singapore exercises sovereign rights or jurisdiction under its national laws and international law for the purpose of exploration and exploitation of the natural resources of such areas; and (2) With respect to the United States; (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; and (s) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.510 Filing of claim for preferential tariff treatment upon importation. (a) Claim. see (b) Corrected claim. see § 10.511 Supporting statement. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good; (ii) The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the supporting statement (if different from the information required by paragraph (a)(2)(i) of this section); (iii) The legal name, address, telephone, and e-mail address (if any) of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone, and e-mail address (if any) of the producer of the good (if known); (v) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (vi) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 25(o), HTSUS; (vii) The applicable rule of origin set forth in General Note 25, HTSUS, under which the good qualifies as an originating good; and (3) Must include a statement, in substantially the following form: I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods originated or are considered to have originated in the territory of one or more of the Parties, and comply with the origin requirements specified for those goods in the United States-Singapore Free Trade Agreement; there has been no further production or any other operation outside the territories of the parties, other than unloading, reloading, or any other operation necessary to preserve the goods in good condition or to transport the goods to the United States; and This document consists of ______ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Applicability of supporting statement. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the statement. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating. § 10.512 Importer obligations. (a) General. see (b) Compliance. (1) Must have records that explain how the importer came to the conclusion that the good qualifies for preferential tariff treatment. Those records must include documents that support a claim that the article in question qualifies for preferential tariff treatment because it meets the applicable rules of origin set forth in General Note 25, HTSUS, and in this subpart. Those records may include a properly completed importer's supporting statement as set forth in § 10.511 of this subpart; and (2) May be required to present evidence that the conditions set forth in § 10.542 of this subpart were met if the imported article was shipped through an intermediate country. (c) Information provided by exporter or producer. § 10.513 Supporting statement not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the goods does not exceed U.S. $2,500. (b) Exception. § 10.514 Maintenance of records. (a) General. (1) The purchase of, cost of, value of, and payment for, the good; (2) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and (3) Where appropriate, the production of the good in the form in which the good was exported. (b) Applicability of other recordkeeping requirements. (c) Method of maintenance. § 10.515 Effect of noncompliance; failure to provide documentation regarding third country transportation. (a) Effect of noncompliance. (b) Failure to provide documentation regarding third country transportation. Tariff Preference Level § 10.520 Filing of claim for tariff preference level. A cotton or man-made fiber apparel good described in § 10.521 of this subpart that does not qualify as an originating good under § 10.531 of this subpart may nevertheless be entitled to preferential tariff treatment under the SFTA under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable tariff item in Chapter 99 of the HTSUS (9910.61.01 through 9910.61.89) and the applicable subheading in Chapter 61 or 62 of the HTSUS under which each non-originating cotton or man-made fiber apparel good is classified. For TPL goods, the letters “SG” must be inserted as a prefix to the applicable HTSUS 9910 tariff item when the entry is filed. The importer must also submit a certificate of eligibility as set forth in § 10.522 of this subpart. § 10.521 Goods eligible for tariff preference level claims. Goods eligible for a TPL claim consist of cotton or man-made fiber apparel goods provided for in Chapters 61 and 62 of the HTSUS that are both cut (or knit-to-shape) and sewn or otherwise assembled in Singapore from fabric or yarn produced or obtained outside the territory of Singapore or the United States, and that meet the applicable conditions for preferential tariff treatment under the SFTA, other than the condition that they are originating goods. The preferential tariff treatment is limited to the quantities specified in U.S. Note 13, Subchapter X, Chapter 99, HTSUS. § 10.522 Submission of certificate of eligibility. An importer who claims preferential tariff treatment on a non-originating cotton or man-made fiber apparel good must submit a certificate of eligibility issued by the Government of Singapore, demonstrating that the good is eligible for entry under the applicable TPL, as set forth in § 10.521 of this subpart. Rules of Origin § 10.530 Definitions. For purposes of §§ 10.530 through 10.542: (a) Adjusted value. (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the merchandise from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (j) of this section; (b) Exporter. (c) Fungible goods or materials. (d) Generally Accepted Accounting Principles. (e) Good. (f) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. (1) Mineral goods extracted in the territory of one or both of the Parties; (2) Vegetable goods, as such goods are defined in the Harmonized System, harvested in the territory of one or both of the Parties; (3) Live animals born and raised in the territory of one or both of the Parties; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties; (5) Goods (fish, shellfish and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag; (6) Goods produced exclusively from products referred to in subparagraph (f)(5) of this section on board factory ships registered or recorded with a Party and flying its flag; (7) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed; (8) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (9) Waste and scrap derived from: (i) Production in the territory of one or both of the Parties; or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (10) Recovered goods derived in the territory of one or both of the Parties from used goods; or (11) Goods produced in one or both of the Parties exclusively from goods referred to in paragraphs (f)(1) through (f)(9) of this section or from the derivatives of such goods; (g) Material. (h) Non-originating good. (i) Non-originating material. (j) Packing materials and containers for shipment. (k) Producer. (l) Production. (m) Recovered goods. (1) The complete disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition by one or more of the following processes: Welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding, in order for such parts to be assembled with other parts, including other recovered parts, in the production of a remanufactured good as defined in paragraph (o) of this section; (n) Relationship. (o) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; (2) Has the same life expectancy and meets the same performance standards as a new good; and (3) Enjoys the same factory warranty as such a new good; (p) Self-produced material. (q) Value. § 10.531 Originating goods. Except as provided in § 10.543 of this subpart, a good imported into the customs territory of the United States will be considered an originating good under the SFTA only if: (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties; (b) The good is transformed in one or both of the Parties so that: (1) Each non-originating material undergoes an applicable change in tariff classification specified in General Note 25(o), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; and (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 25(o), HTSUS; or (c) The good, in its condition as imported into the United States, is enumerated as an Integrated Sourcing Initiative good in General Note 25(m), HTSUS, and is imported from the territory of Singapore. § 10.532 Integrated Sourcing Initiative. (a) For purposes of General Note 25(b)(ii), HTSUS, a good is eligible for treatment as an originating good under the Integrated Sourcing Initiative if: (1) The good, in its condition as imported, is both classified in a tariff provision enumerated in the first column of General Note 25(m), HTSUS, and described opposite that tariff provision in the list of information technology articles set forth in the second column of General Note 25(m), HTSUS; (2) The good, regardless of its origin, is imported into the territory of the United States from the territory of Singapore. If a product of a non-Party, the good must have been imported into Singapore prior to its importation into the territory of the United States; and (3) The good satisfies the conditions and requirements of § 10.542 relating to third country transportation. (b) A good enumerated in General Note 25(m), HTSUS, that is used in the production of another good in Singapore will not be considered an originating material for purposes of determining the eligibility for preferential tariff treatment of such other good unless: (1) The good enumerated in General Note 25(m), HTSUS, satisfies an applicable rule of origin set out in General Note 25(o), HTSUS; or (2) The good enumerated in General Note 25(m), HTSUS, is imported into the territory of Singapore from the territory of the United States prior to being used in the production of a good in Singapore. § 10.533 De minimis. (a) Except as provided in paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to General Note 25(o), HTSUS, will nonetheless be considered to be an originating good if: (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in calculating the value of non-originating materials for any applicable regional value content requirement for the good under General Note 25(o), HTSUS; and (3) The good meets all other applicable requirements of General Note 25, HTSUS. (b) Paragraph (a) does not apply to: (1) A non-originating material provided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (2) A non-originating material provided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in one of the following HTSUS provisions: Subheading 1901.10, 1901.20 or 1901.90; heading 2105; or subheading 2106.90, 2202.90 or 2309.90; (3) A non-originating material provided for in heading 0805, HTSUS, or subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in subheadings 2009.11 through 2009.39, HTSUS, or in subheading 2106.90 or 2202.90, HTSUS; (4) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514 or 1515, HTSUS; (5) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in headings 1701 through 1703, HTSUS; (6) A non-originating material provided for in Chapter 17, HTSUS, or heading 1805, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; (7) A non-originating material provided for in headings 2203 through 2208, HTSUS, that is used in the production of a good provided for in heading 2207 or 2208, HTSUS; and (8) A non-originating material used in the production of a good provided for in Chapters 1 through 21, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined. (c) A textile or apparel good provided for in Chapters 50 through 63, HTSUS, that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 25(o), HTSUS, will nevertheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component. Notwithstanding the preceding sentence, a textile or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification of the good will be considered an originating good only if such yarns are wholly formed in the territory of a Party. § 10.534 Accumulation. (a) Originating materials of Singapore or the United States that are used in the production of a good in the territory of the other party will be considered to originate in the territory of the other party. (b) A good that is produced in the territory of one or both of the Parties by one or more producers, will be considered an originating good if the good satisfies: (1) The applicable requirements of § 10.531 of this subpart and General Note 25, HTSUS; or (2) The provisions of § 10.532 of this subpart. § 10.535 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. § 10.536 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, except for a material to which paragraph (a)(3) of this section applies, the adjusted value of the material with reasonable modifications to the provisions of the Customs Valuation Agreement so as to permit their application to the domestic acquisition by the producer. Such reasonable modifications include, but are not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation; or Example 1. The producer in Singapore purchases material x from an unrelated seller in Singapore for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Singapore ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Singapore by the seller (or by anyone else). So long as the producer acquired material x in Singapore, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within Singapore at or about the same time the goods were sold to the producer in Singapore. Thus, if the seller of material x also sold an identical material to another buyer in Singapore without restrictions, that other sale would be used to determine the adjusted value of material x. (3) In the case of a self-produced material, or in a case in which the relationship between the producer of the good and the seller of the material influenced the price actually paid or payable for the material, including a material obtained without charge, the sum of: (i) All expenses incurred in the production of the material, including general expenses; and (ii) A reasonable amount for profit. (b) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and (2) Deductions from non-originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; (iv) The cost of processing incurred in the territory of Singapore or the United States in the production of the non-originating material; and (v) The cost of originating materials used in the production of the non-originating material in the territory of Singapore or the United States. (c) Accounting method. § 10.537 Accessories, spare parts, or tools. Accessories, spare parts, or tools that are delivered with a good and that form part of the good's standard accessories, spare parts, or tools will be treated as originating goods if the good is an originating good, and will be disregarded in determining whether all the non-originating materials used in the production of the good undergo an applicable change in tariff classification specified in General Note 25(o), HTSUS, provided that: (a) The accessories, spare parts, or tools are not invoiced separately from the good; (b) The quantities and value of the accessories, spare parts, or tools are customary for the good; and (c) If the good is subject to a regional value content requirement, the value of the accessories, spare parts, or tools will be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good under § 10.535 of this subpart. § 10.538 Fungible goods and materials. (a) A person claiming preferential treatment under the SFTA for a good may claim that a fungible good or material is originating either based on the physical segregation of each fungible good or material or by using an inventory management method. For purposes of this subpart, the term “inventory management method” means: (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) A person selecting an inventory management method under paragraph (a) of this section for particular fungible goods or materials must continue to use that method for those fungible goods or materials throughout the fiscal year of that person. § 10.539 Retail packaging materials and containers. Packaging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential treatment under the SFTA is claimed, will be disregarded in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in General Note 25(o), HTSUS. If the good is subject to a regional value content requirement, the value of such packaging materials and containers will be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good. Example 1. Singaporean Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.536(a)(1) of this subpart, the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV−VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, but the blister packages are originating. In this case, the adjusted value of the originating blister packages would not be included as part of the VNM of good C under the build-down method. However, if the U.S. importer had used the build-up method, RVC = (VOM/AV) × 100 ( see § 10.540 Packing materials and containers for shipment. (a) Packing materials and containers for shipment, as defined in § 10.530(j) of this subpart, are to be disregarded in determining whether the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in General Note 25(o), HTSUS. Accordingly, such materials and containers are not required to undergo the applicable change in tariff classification even if they are non-originating. (b) Packing materials and containers for shipment, as defined in § 10.530(j) of this subpart, are to be disregarded in determining the regional value content of a good imported into the United States. Accordingly, in applying either the build-down or build-up method for determining the regional value content of the good imported into the United States, the value of such packing materials and containers for shipment (whether originating or non-originating) is disregarded and not included in AV, adjusted value, VNM, value of non-originating materials, or VOM, value of originating materials. Example. Singaporean Producer A produces good C. Producer A ships good C to the U.S. in a shipping container which it purchased from Company B in Singapore. The shipping container is originating. The value of the shipping container determined under section § 10.536(a)(2) of this subpart is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The United States importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.541 Indirect materials. An indirect material, as defined in § 10.502(j) of this subpart, will be considered to be an originating material without regard to where it is produced, and its value will be the cost registered in the accounting records of the producer of the good. Example. Singaporean Producer C produces good C using non-originating material A. Producer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.531(b)(1) of this subpart and General Note 25(o), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material A must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced. § 10.542 Third country transportation. (a) General. (b) Documentary evidence. § 10.543 Certain apparel goods made from fabric or yarn not available in commercial quantities. Notwithstanding the provisions of § 10.531 of this subpart, a textile apparel article of Chapter 61 or 62, HTSUS, will be considered an originating good under the SFTA if it is both cut (or knit to shape) and sewn or otherwise assembled in one or both of the Parties from fabric or yarn, regardless of origin, designated by the Committee for the Implementation of Textile Agreements (“CITA”) as not available in commercial quantities in a timely manner in the United States. Such designations by CITA, identifying apparel goods made from such fabric or yarn as eligible for entry under subheading 9819.11.24 or 9820.11.27, HTSUS, must have been made by notices published in the Federal Register 1 1 Federal Register Origin Verifications and Determinations § 10.550 Verification and justification of claim for preferential treatment. (a) Verification. (1) Requests for information from the importer; (2) Written requests for information to the exporter or producer; (3) Requests for the importer to arrange for the exporter or producer to provide information directly to CBP; (4) Visits to the premises of the exporter or producer in Singapore, in accordance with procedures that the Parties adopt pertaining to verification; and (5) Such other procedures as the Parties may agree. (b) Applicable accounting principles. § 10.551 Issuance of negative origin determinations. If, as a result of an origin verification initiated under § 10.550 of this subpart, CBP denies a claim for preferential treatment made under § 10.510(a) of this subpart, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 25, HTSUS, and in §§ 10.530 through 10.543 of this subpart, the legal basis for the determination. § 10.552 Information sharing by CBP regarding textile and apparel goods produced in the United States. (a) Documents or information in the possession of U.S. enterprises. (b) Circumvention defined. § 10.553 Textile and apparel site visits. (a) Visits to enterprises of Singapore. (b) Denial of permission to visit. § 10.554 Exclusion of textile or apparel goods for intentional circumvention. (a) General. (b) Time periods. (1) With respect to a first finding, the applicable period is six months; (2) With respect to a second finding, the applicable period is two years; or (3) With respect to a third or subsequent finding, the applicable period is two years. If, at the time of a third or subsequent finding, an exclusion of goods with respect to an enterprise is in effect as a result of a previous finding, the two-year period applicable to the third or subsequent finding will begin on the day after the day on which the previous exclusion period terminates. Penalties § 10.560 General. Except as otherwise provided in this subpart, all criminal, civil or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regulations will also apply to U.S. importers for violations of the laws and regulations relating to the SFTA. § 10.561 Corrected claim or supporting statement. An importer who makes a corrected claim under § 10.510(b) will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or supporting statement, provided that the corrected claim is promptly and voluntarily made. § 10.562 Framework for correcting claims or supporting statements. (a) “Promptly and voluntarily” defined. (1)(i) Done within one year following the date on which the importer made the incorrect claim; or (ii) Done later than one year following the date on which the importer made the incorrect claim, provided that the corrected claim is made: (A) Before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (B) Before any of the events specified in § 162.74(i) of this chapter has occurred; or (C) Within 30 days after the importer initially becomes aware that the incorrect claim is not valid; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) Accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (e) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim relates; (2) Identifies each affected import transaction, including each port of importation and the approximate date of each importation. (3) Specifies the nature of the incorrect statements or omissions regarding the claim; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Substantial compliance. (e) Tender of actual loss of duties. (f) Applicability of prior disclosure provisions. Goods Returned After Repair or Alteration § 10.570 Goods re-entered after repair or alteration in Singapore. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. Subpart J—Dominican Republic—Central America—United States Free Trade Agreement Source: CBP Dec. 08-22, 73 FR 33678, June 13, 2008, unless otherwise noted. General Provisions § 10.581 Scope. This subpart implements the duty preference and related customs provisions applicable to imported and exported goods under the Dominican Republic—Central America—United States Free Trade Agreement (the CAFTA-DR) signed on August 5, 2004, and under the Dominican Republic—Central America—United States Free Trade Agreement Implementation Act (the Act; Pub. L. 109-53, 119 Stat. 462 (19 U.S.C. 4001 et seq. § 10.582 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Claim of origin. (c) Customs authority. (d) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's domestic law; or (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (e) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (f) Days. (g) Enterprise. (h) GATT 1994. General Agreement on Tariffs and Trade 1994, WTO Agreement; (i) Harmonized System. Harmonized Commodity Description and Coding System, (j) Heading. (k) HTSUS. Harmonized Tariff Schedule of the United States (l) Identical goods. (m) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment or buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production; (n) Originating. (o) Party. (1) The United States; and (2) Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua, for such time as the CAFTA-DR is in force between the United States and that country; (p) Person. (q) Preferential tariff treatment. (r) Subheading. (s) Tariff preference level. (t) Textile or apparel good. (u) Territory. (1) With respect to each Party other than the United States, the land, maritime, and air space under its sovereignty and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; (2) With respect to the United States: (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (v) WTO. (w) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50698, Aug. 17, 2010] Import Requirements § 10.583 Filing of claim for preferential tariff treatment upon importation. (a) Basis of claim. (1) A certification, as specified in § 10.584 of this subpart, that is prepared by the importer, exporter, or producer of the good; or (2) The importer's knowledge that the good qualifies as an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good. (b) Making a claim. (c) Corrected claim. see [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] § 10.584 Certification. (a) General. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim; (3) Must include the following information: (i) The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good, the exporter of the good (if different from the producer), and the producer of the good; (ii) The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by paragraph (a)(3)(i) of this section); (iii) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (iv) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 29(n), HTSUS; and (v) The applicable rule of origin set forth in General Note 29, HTSUS, under which the good qualifies as an originating good; and (4) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods originated or are considered to have originated in the territory of one or more of the Parties, and comply with the origin requirements specified for those goods in the Dominican Republic—Central America—United States Free Trade Agreement; there has been no further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the goods in good condition or to transport the goods to the United States; the goods remained under the control of customs authorities while in the territory of a non-Party; and This document consists of ____ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Certification by the exporter or producer. (1) The exporter's or producer's knowledge that the good is originating; or (2) In the case of an exporter, reasonable reliance on the producer's certification that the good is originating. (e) Applicability of certification. (1) A single shipment of a good into the United States; or (2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification. (f) Validity of certification. § 10.585 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the CAFTA-DR; (2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.584 of this subpart; (3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the submission of supporting documents, the importer will provide to CBP, or arrange for the direct submission by the exporter or producer, all information relied on by the exporter or producer in preparing the certification. (b) Information provided by exporter or producer. (c) Exemption from penalties. § 10.586 Certification not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. § 10.587 Maintenance of records. (a) General. (b) Method of maintenance. § 10.588 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. Export Requirements § 10.589 Certification for goods exported to a Party. (a) Submission of certification to CBP. (b) Notification of errors in certification. see (c) Maintenance of records General. (i) The purchase, cost, and value of, and payment for, the good; (ii) The purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and (iii) The production of the good in the form in which the good was exported. (2) Method of maintenance. (3) Availability of records. Post-Importation Duty Refund Claims § 10.590 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.591 of this subpart. Subject to the provisions of § 10.588 of this subpart, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.592(c) of this subpart. § 10.591 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written declaration stating that the good qualified as an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) A copy of a certification prepared in accordance with § 10.584 of this subpart if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment; (3) A written statement indicating whether the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identification number, and address and must specify the date on which the documentation was provided; and (4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. § 10.592 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] Rules of Origin § 10.593 Definitions. For purposes of §§ 10.593 through 10.605: (a) Adjusted value. (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (m) of this section; (b) Class of motor vehicles. (1) Motor vehicles provided for in subheading 8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS, or motor vehicles for the transport of 16 or more persons provided for in subheading 8702.10 or 8702.90, HTSUS; (2) Motor vehicles provided for in subheading 8701.10 or any of subheadings 8701.30 through 8701.90, HTSUS; (3) Motor vehicles for the transport of 15 or fewer persons provided for in subheading 8702.10 or 8702.90, HTSUS, or motor vehicles provided for in subheading 8704.21 or 8704.31, HTSUS; or (4) Motor vehicles provided for in subheadings 8703.21 through 8703.90, HTSUS; (c) Exporter. (d) Fungible good or material. (e) Generally Accepted Accounting Principles. (f) Good. (g) Goods wholly obtained or produced entirely in the territory of one or more of the Parties. (1) Plants and plant products harvested or gathered in the territory of one or more of the Parties; (2) Live animals born and raised in the territory of one or more of the Parties; (3) Goods obtained in the territory of one or more of the Parties from live animals; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or more of the Parties; (5) Minerals and other natural resources not included in paragraphs (g)(1) through (g)(4) of this section that are extracted or taken in the territory of one or more of the Parties; (6) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of one or more of the Parties by vessels registered or recorded with a Party and flying its flag; (7) Goods produced on board factory ships from the goods referred to in paragraph (g)(6) of this section, if such factory ships are registered or recorded with a Party and flying its flag; (8) Goods taken by a Party or a person of a Party from the seabed or subsoil outside territorial waters, if a Party has rights to exploit such seabed or subsoil; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Manufacturing or processing operations in the territory of one or more of the Parties; or (ii) Used goods collected in the territory of one or more of the Parties, if such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of one or more of the Parties from used goods, and used in the territory of a Party in the production of remanufactured goods; and (12) Goods produced in the territory of one or more of the Parties exclusively from goods referred to in any of paragraphs (g)(1) through (g)(10) of this section, or from the derivatives of such goods, at any stage of production; (h) Material. (i) Model line. (j) Net cost. (k) Non-allowable interest costs. (l) Non-originating good or non-originating material. (m) Packing materials and containers for shipment. (n) Producer. (o) Production. (p) Reasonably allocate. (q) Recovered goods. (1) The disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition; (r) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; and (2) Has a similar life expectancy and enjoys a factory warranty similar to a new good that is classified in one of the enumerated HTSUS chapters or headings; (s) Royalties. (1) Personnel training, without regard to where performed; and (2) If performed in the territory of one or more of the Parties, engineering, tooling, die-setting, software design and similar computer services; (t) Sales promotion, marketing, and after-sales service costs. (1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; (2) Sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; (3) Salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing and after-sales service personnel; (4) Recruiting and training of sales promotion, marketing and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; (5) Product liability insurance; (6) Office supplies for sales promotion, marketing and after-sales service of goods, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; (7) Telephone, mail and other communications, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; (8) Rent and depreciation of sales promotion, marketing and after-sales service offices and distribution centers; (9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; and (10) Payments by the producer to other persons for warranty repairs; (u) Self-produced material. (v) Shipping and packing costs. (w) Total cost. (x) Used. (y) Value. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] § 10.594 Originating goods. Except as otherwise provided in this subpart and General Note 29(m), HTSUS, a good imported into the customs territory of the United States will be considered an originating good under the CAFTA-DR only if: (a) The good is wholly obtained or produced entirely in the territory of one or more of the Parties; (b) The good is produced entirely in the territory of one or more of the Parties and: (1) Each non-originating material used in the production of the good undergoes an applicable change in tariff classification specified in General Note 29(n), HTSUS, and the good satisfies all other applicable requirements of General Note 29, HTSUS; or (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 29(n), HTSUS, and satisfies all other applicable requirements of General Note 29, HTSUS; or (c) The good is produced entirely in the territory of one or more of the Parties exclusively from originating materials. § 10.595 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. (d) Special rule for certain automotive goods General. (2) Net cost method. (i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allocating the resulting net cost of those goods to the automotive good; (ii) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or (iii) Reasonably allocating each cost that forms part of the total costs incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, or non-allowable interest costs. (3) Motor vehicles General. (ii) Categories. (A) The same model line of motor vehicles, in the same class of vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; (B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; and (C) The same model line of motor vehicles produced in the territory of a Party as the motor vehicle for which the regional value content is being calculated. (4) Other automotive goods General. (A) Average the amounts calculated under the formula set forth in paragraph (d)(2) of this section over any of the following: The fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quarter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation; (B) Determine the average referred to in paragraph (d)(4)(i) of this section separately for such goods sold to one or more motor vehicle producers; or (C) Make a separate determination under paragraph (d)(4)(i) or (d)(4)(ii) for automotive goods that are exported to the territory of one or more Parties. (ii) Duration of use. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] § 10.596 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, of the material with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation); or (3) In the case of a self-produced material, the sum of: (i) All expenses incurred in the production of the material, including general expenses; and (ii) An amount for profit equivalent to the profit added in the normal course of trade. (b) Examples. Example 1. A producer in El Salvador purchases material x from an unrelated seller in El Salvador for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in El Salvador ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into El Salvador by the seller (or by anyone else). So long as the producer acquired material x in El Salvador, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within El Salvador at or about the same time the goods were sold to the producer in El Salvador. Thus, if the seller of material x also sold an identical material to another buyer in El Salvador without restrictions, that other sale would be used to determine the adjusted value of material x. (c) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or more of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (2) Deductions from non-originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or more of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of one or more of the Parties. (d) Accounting method. § 10.597 Accumulation. (a) Originating materials from the territory of one or more of the Parties that are used in the production of a good in the territory of another Party will be considered to originate in the territory of that other Party. (b) A good that is produced in the territory of one or more of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.594 of this subpart and all other applicable requirements of General Note 29, HTSUS. § 10.598 De minimis. (a) General. (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content requirement for the good under General Note 29(n), HTSUS; and (3) The good meets all other applicable requirements of General Note 29, HTSUS. (b) Exceptions. (1) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (2) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, that is used in the production of the following goods: (i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS; (ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS; (iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS; (iv) Goods provided for in heading 2105, HTSUS; (v) Beverages containing milk provided for in subheading 2202.90, HTSUS; and (vi) Animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90, HTSUS; and (3) A non-originating material provided for in heading 0805, HTSUS, or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in any of subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheading 2106.90 or 2202.90, HTSUS; (4) A non-originating material provided for in heading 0901 or 2101, HTSUS, that is used in the production of a good provided for in heading 0901 or 2101, HTSUS; (5) A non-originating material provided for in heading 1006, HTSUS, that is used in the production of a good provided for in heading 1102 or 1103, HTSUS, or subheading 1904.90, HTSUS; (6) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good provided for in Chapter 15, HTSUS; (7) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in any of headings 1701 through 1703, HTSUS; (8) A non-originating material provided for in Chapter 17, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; and (9) Except as provided in paragraphs (b)(1) through (b)(8) of this section and General Note 29(n), HTSUS, a non-originating material used in the production of a good provided for in any of Chapters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this subpart. (c) Textile and apparel goods General. (i) The total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or (ii) The yarns are nylon filament yarns (other than elastomeric yarns) that are provided for in subheading 5402.11.30, 5402.11.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00, or 5402.61.00, HTSUS, and that are products of Canada, Mexico, or Israel. (2) Exception for goods containing elastomeric yarns. (3) Yarn, fabric, or fiber. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] § 10.599 Fungible goods and materials. (a) General. (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) Duration of use. § 10.600 Accessories, spare parts, or tools. (a) General. (1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good, regardless of whether they appear specified or separately identified in the invoice for the good; and (2) The quantities and value of the accessories, spare parts, or tools are customary for the good. (a) Regional value content. § 10.601 Retail packaging materials and containers. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example 1. Guatemalan Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.596(a)(1) of this subpart, the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV-VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, except that the blister packages are originating. In this case, the adjusted value of the originating blister packages would not see § 10.602 Packing materials and containers for shipment. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example. Producer A of the Dominican Republic produces good C. Producer A ships good C to the United States in a shipping container that it purchased from Company B in the Dominican Republic. The shipping container is originating. The value of the shipping container determined under section § 10.596(a)(2) of this subpart is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The United States importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.603 Indirect materials. An indirect material, as defined in § 10.582(m) of this subpart, will be considered to be an originating material without regard to where it is produced. Example. Honduran Producer C produces good C using non-originating material A. Producer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.594(b)(1) of this subpart and General Note 29(n), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material A must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced. § 10.604 Transit and transshipment. (a) General. (1) Undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or (2) Does not remain under the control of customs authorities in the territory of a non-Party. (b) Documentary evidence. § 10.605 Goods classifiable as goods put up in sets. Notwithstanding the specific rules set forth in General Note 29(n), HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless: (a) Each of the goods in the set is an originating good; or (b) The total value of the non-originating goods in the set does not exceed; (1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or (2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set. Tariff Preference Level § 10.606 Filing of claim for tariff preference level. Apparel goods of a Party described in § 10.607 of this subpart that do not qualify as originating goods under § 10.594 of this subpart may nevertheless be entitled to preferential tariff treatment under the CAFTA-DR under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable subheading in Chapter 98 or 99 of the HTSUS immediately above the applicable subheading in Chapter 61 or 62 of the HTSUS under which each non-originating apparel good is classified. The applicable Chapter 98 and 99 subheadings are: (a) Subheading 9822.05.11 or 9822.05.13 for goods described in § 10.607(a); (b) Subheading 9915.61.01 for goods described in § 10.607(b) and (c); (c) Subheading 9915.62.05 for goods described in § 10.607(d); (d) Subheading 9915.62.15 for goods described in § 10.607(e); and (e) Subheading 9915.61.03 or 9915.61.04 for goods described in § 10.607(f); [CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] § 10.607 Goods eligible for tariff preference level claims. The following goods are eligible for a TPL claim filed under § 10.606 of this subpart: (a) Cumulation for certain woven apparel goods of a Party. (b) Cotton or man-made fiber apparel goods of Nicaragua. (c) Men's wool sport coats of Nicaragua. (d) Apparel goods of Costa Rica, not knitted or crocheted. (e) Apparel goods of Costa Rica made from wool fabric. (f) Mastectomy swimsuits of Costa Rica. [CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010] § 10.608 Submission of certificate of eligibility for certain apparel goods of Nicaragua. An importer who claims preferential tariff treatment on a non-originating apparel good of Nicaragua specified in paragraphs (b) and (c) of § 10.607 of this subpart must submit a certificate of eligibility issued by an authorized official of the Government of Nicaragua, demonstrating that the good is eligible for entry under the applicable TPL. The certificate of eligibility must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010] § 10.609 Transshipment of non-originating cotton or man-made fiber apparel goods. (a) General. (1) Undergoes production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or (2) Does not remain under the control of customs authorities in the territory of a non-Party. (b) Documentary evidence. § 10.610 Effect of noncompliance; failure to provide documentation regarding transshipment of non-originating cotton or man-made fiber apparel goods. (a) Effect of noncompliance. (b) Failure to provide documentation regarding transshipment. Origin Verifications and Determinations § 10.616 Verification and justification of claim for preferential tariff treatment. (a) Verification. (1) Written requests for information from the importer, exporter, or producer; (2) Written questionnaires to the importer, exporter, or producer; (3) Visits to the premises of the exporter or producer in the territory of the Party in which the good is produced, to review the records of the type referred to in § 10.589(c)(1) of this subpart or to observe the facilities used in the production of the good, in accordance with the framework that the Parties develop for conducting verifications; and (4) Such other procedures to which the United States and the exporting Party may agree. (b) Applicable accounting principles. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010] § 10.617 Special rule for verifications in a Party of U.S. imports of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made, if CBP determines there is insufficient information to support the claim; (ii) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that an enterprise has provided incorrect information to support the claim; (iii) Detention of any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect information, to support the claim; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided incorrect information as to, the country of origin of any such good. (b) Procedures to determine compliance with applicable customs laws and regulations of the U.S. General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to support a claim for preferential tariff treatment with respect to any such good; (ii) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information to support a claim for preferential tariff treatment with respect to any such good; (iii) Detention of any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect information, to support a claim for preferential tariff treatment with respect to any such good; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided incorrect information as to, the country of origin of any such good. (c) Denial of permission to conduct a verification. (d) Assistance by U.S. officials in conducting a verification abroad. (e) Continuation of appropriate action. [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010] § 10.618 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment made under § 10.583(b) of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 29, HTSUS, and in §§ 10.593 through 10.605 of this subpart, the legal basis for the determination. § 10.619 Repeated false or unsupported preference claims. Where verification or other information reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the CAFTA-DR rules of origin set forth in General Note 29, HTSUS, CBP may suspend preferential tariff treatment under the CAFTA-DR to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 29, HTSUS. Penalties § 10.620 General. Except as otherwise provided in this subpart, all criminal, civil, or administrative penalties which may be imposed on U.S. importers, exporters, and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the laws and regulations relating to the CAFTA-DR. § 10.621 Corrected claim or certification by importers. An importer who makes a corrected claim under § 10.583(c) of this subpart will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certification, provided that the corrected claim is promptly and voluntarily made. § 10.622 Corrected certification by U.S. exporters or producers. Civil or administrative penalties provided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notification pursuant to § 10.589(b) with respect to the making of an incorrect certification. § 10.623 Framework for correcting claims or certifications. (a) “ Promptly and voluntarily” defined. (1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or (iii) Done within 30 days after the importer, exporter, or producer initially becomes aware that the claim or certification is incorrect; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) In the case of a corrected claim or certification by an importer, accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (d) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim or certification relates; (2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, including each port of importation and the approximate date of each importation; (3) Specifies the nature of the incorrect statements or omissions regarding the claim or certification; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which are unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Tender of actual loss of duties. Goods Returned After Repair or Alteration § 10.624 Goods re-entered after repair or alteration in a Party. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. Retroactive Preferential Tariff Treatment for Textile and Apparel Goods § 10.625 Refunds of excess customs duties. (a) Applicability. (b) General. (1) The good would have qualified as an originating good under section 203 of the Act if the good had been entered after the date of entry into force of the Agreement for that country; and (2) Customs duties in excess of the applicable rate of duty for that good set out in the Schedule of the United States to Annex 3.3 of the Agreement were paid. (c) Request for liquidation or reliquidation. (1) To locate the entry or to reconstruct the entry if it cannot be located; and (2) To determine that the good satisfies the conditions set forth in paragraph (b) of this section. (d) Eligible CAFTA-DR country defined. Federal Register, [CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010] Subpart K—United States-Jordan Free Trade Agreement Source: CBP Dec. 07-50, 72 FR 35156, June 27, 2007, unless otherwise noted. General Provisions § 10.701 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Jordan Free Trade Agreement (the US-JFTA) signed on October 24, 2000, and under the United States-Jordan Free Trade Area Implementation Act (the Act; 115 Stat. 243). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the US-JFTA are contained in part 163 of this chapter. § 10.702 Definitions. The following definitions apply for purposes of §§ 10.701 through 10.712: (a) Claim for preferential tariff treatment. (b) Customs authority. (c) Customs territory of the United States. (d) Days. (e) Entered. (f) Good. (g) Harmonized System. Harmonized Commodity Description and Coding System, (h) Heading. (i) HTSUS. Harmonized Tariff Schedule of the United States (j) Material. (k) New or different article of commerce. (l) Party. (m) Preferential tariff treatment. (n) Subheading. (o) Territory. (1) With respect to Jordan, the land, maritime and air space under its sovereignty, and the exclusive economic zone within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; and (2) With respect to the United States, (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico, (ii) The foreign trade zones located in the United States and Puerto Rico, and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (p) Textile or apparel good. (q) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization (r) Wholly the growth, product, or manufacture of Jordan. Import Requirements § 10.703 Filing of claim for preferential tariff treatment. An importer may make a claim for US-JFTA preferential tariff treatment by including on the entry summary, or equivalent documentation, the symbol “JO” as a prefix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an authorized electronic data interchange system. § 10.704 Declaration. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good; (ii) The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the declaration (if different from the information required by paragraph (a)(2)(i) of this section); (iii) The legal name, address, telephone and e-mail address (if any) of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone and e-mail address (if any) of the producer of the good (if known); (v) A description of the good, quantity, numbers, and marks of packages, invoice numbers, and bills of lading; (vi) A description of the operations performed in the production of the good in Jordan and identification of the direct costs of processing operations; (vii) A description of any materials used in the production of the good that are wholly the growth, product, or manufacture of Jordan or the United States, and a statement as to the cost or value of such materials; (viii) A description of the operations performed on, and a statement as to the origin and cost or value of, any foreign materials used in the good that are claimed to have been sufficiently processed in Jordan so as to be materials produced in Jordan; and (ix) A description of the origin and cost or value of any foreign materials used in the good that have not been substantially transformed in Jordan. (3) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain, and present upon request, documentation necessary to support these representations; The goods comply with all the requirements for preferential tariff treatment specified for those goods in the United States-Jordan Free Trade Agreement; and This document consists of ____ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Applicability of declaration. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the production that qualifies the goods for preferential tariff treatment. § 10.705 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the US-JFTA: (2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.704 of this subpart; (3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive information, including cost and sourcing information. (b) Information provided by exporter or producer. § 10.706 Declaration not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the goods does not exceed U.S. $2,500. (b) Exception. § 10.707 Maintenance of records. (a) General. (b) Applicability of other recordkeeping requirements. (c) Method of maintenance. § 10.708 Effect of noncompliance; failure to provide documentation regarding third-country transportation. (a) Effect of noncompliance. (b) Failure to provide documentation regarding third country transportation. Rules of Origin § 10.709 Country of origin criteria. (a) General. (1) The good is either: (i) Wholly the growth, product, or manufacture of Jordan; or (ii) A new or different article of commerce that has been grown, produced, or manufactured in Jordan; and (2) With respect to a good described in paragraph (a)(1)(ii) of this section, the good satisfies the value-content requirement specified in § 10.710 of this subpart. (b) Exceptions Combining, packaging, and diluting operations. (2) Certain juices. (i) Is imported into Jordan, and, at the time of importation, would be classified in heading 0805, HTSUS; and (ii) Is processed in Jordan into a good classified in any of subheadings 2009.11 through 2009.30, HTSUS. (c) Textile and apparel goods. § 10.710 Value-content requirement. (a) General. (b) Materials produced in the United States. (1) Wholly the growth, product, or manufacture of the United States; or (2) Subject to the exceptions specified in § 10.709(b) of this subpart, substantially transformed in the United States into a new and different article of commerce that has a new name, character, or use, which is then used in Jordan in the production or manufacture of a new or different article of commerce that is imported into the United States. Except where the context otherwise requires, the examples set forth in § 10.196(a) of this part will apply for purposes of this paragraph. (c) Cost or value of materials Materials produced in Jordan defined. (i) Wholly the growth, product, or manufacture of Jordan; or (ii) Subject to the exceptions specified in § 10.709(b) of this subpart, substantially transformed in Jordan into a new and different article of commerce that has a new name, character, or use, which is then used in Jordan in the production or manufacture of a new or different article of commerce that is imported into the United States. Except where the context otherwise requires, the examples set forth in § 10.196(a) of this part will apply for purposes of this paragraph. (2) Determination of cost or value of materials. (A) The manufacturer's actual cost for the materials; (B) When not included in the manufacturer's actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant; (C) The actual cost of waste or spoilage, less the value of recoverable scrap; and (D) Taxes and/or duties imposed on the materials by a Party, provided they are not remitted upon exportation. (ii) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of: (A) All expenses incurred in the growth, production, or manufacture of the material, including general expenses; (B) An amount for profit; and (C) Freight, insurance, packing, and all other costs incurred in transporting the material to the manufacturer's plant. (iii) If the pertinent information needed to compute the cost or value of a material is not available, the Center director may ascertain or estimate the value thereof using all reasonable ways and means at his or her disposal. (d) Direct costs of processing operations Items included. (i) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific goods, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; (ii) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific goods; (iii) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific goods; and (iv) Costs of inspecting and testing the specific goods. (2) Items not included. (i) Profit; and (ii) General expenses of doing business that either are not allocable to the specific goods or are not related to the growth, production, manufacture, or assembly of the goods, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. § 10.711 Imported directly. (a) General. (1) Direct shipment from Jordan to the United States without passing through the territory of any intermediate country; (2) If shipment is from Jordan to the United States through the territory of an intermediate country, the goods in the shipment do not enter into the commerce of the intermediate country and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If shipment is through an intermediate country and the invoices and other documents do not show the United States as the final destination, the goods in the shipment are imported directly only if they: (i) Remained under the control of the customs authority in the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of a sale other than at retail, provided that the goods are imported as a result of the original commercial transaction between the importer and the producer or the producer's sales agent; and (iii) Have not been subjected to operations other than loading and unloading, and other activities necessary to preserve the goods in good condition. (b) Documentary evidence. Origin Verifications § 10.712 Verification of claim for preferential tariff treatment. A claim for preferential tariff treatment made under § 10.703 of this subpart, including any statements or other information submitted to CBP in support of the claim, will be subject to such verification as the Center director deems necessary. In the event that the Center director for any reason is prevented from verifying the claim, or is provided with insufficient information to verify or substantiate the claim, the Center director may deny the claim for preferential tariff treatment. Subpart L—United States-Australia Free Trade Agreement Source: CBP Dec. 15-03, 80 FR 7308, Feb. 10, 2015, unless otherwise noted. General Provisions § 10.721 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Australia Free Trade Agreement (the AFTA) signed on May 18, 2004, and under the United States-Australia Free Trade Agreement Implementation Act (“the Act”), Pub. L. 108-286, 118 Stat. 919 (19 U.S.C. 3805 note). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the AFTA and the Act are contained in parts 24, 162, and 163 of this chapter. § 10.722 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Claim of origin. (c) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of the like domestic good or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's law; or (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (d) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (e) Days. (f) Enterprise. (g) Enterprise of a Party. (h) GATT 1994. General Agreement on Tariffs and Trade 1994, WTO Agreement; (i) Goods of a Party. (j) Harmonized System. Harmonized Commodity Description and Coding System, (k) Heading. (l) HTSUS. Harmonized Tariff Schedule of the United States (m) Identical goods. (n) Originating. (o) Party. (p) Person. (q) Preferential tariff treatment. (r) Subheading. (s) Territory. (1) With respect to Australia, the territory of the Commonwealth of Australia: (i) Excluding all external territories other than the Territory of Norfolk Island, the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, the Territory of Ashmore and Cartier Islands, the Territory of Heard Island and McDonald Islands, and the Coral Sea Islands Territory; and (ii) Including Australia's territorial sea, contiguous zone, exclusive economic zone, and continental shelf; and (2) With respect to the United States: (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (t) Textile or apparel good. (u) WTO. (v) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.723 Filing of claim for preferential tariff treatment upon importation. (a) Claim. (b) Corrected claim. see § 10.724 Supporting statement. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone, and email address of the importer of record of the good; (ii) The legal name, address, telephone, and email address of the responsible official or authorized agent of the importer signing the supporting statement (if different from the information required by paragraph (a)(2)(i) of this section); (iii) The legal name, address, telephone, and email address of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone, and email address of the producer of the good, if known; (v) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (vi) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 28(n), HTSUS; (vii) The applicable rule of origin set forth in General Note 28, HTSUS, under which the good qualifies as an originating good; and (3) Must include a statement, in substantially the following form: I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods originated or are considered to have originated in the territory of one or more of the Parties, and comply with the origin requirements specified for those goods in the United States-Australia Free Trade Agreement; there has been no further production or any other operation outside the territories of the parties, other than unloading, reloading, or any other operation necessary to preserve the goods in good condition or to transport the goods to the United States; and This document consists of ______ pages, including all attachments. (b) Responsible official or agent. (c) Language. (d) Applicability of supporting statement. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the statement. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating. § 10.725 Importer obligations. (a) General. (1) Is responsible for the truthfulness of the claim and of all the information and data contained in the supporting statement provided for in § 10.724 of this subpart; and (2) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. If CBP requests the submission of supporting documents, CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive information, including cost and sourcing information. (b) Information provided by exporter or producer. (c) Exemption from penalties. [CBP Dec. 15-03, 80 FR 7308, Feb. 10, 2015, as amended by CBP Dec. 16-1, 81 FR 2086, Jan. 15, 2016] § 10.726 Supporting statement not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. § 10.727 Maintenance of records. (a) General. (1) The purchase of, cost of, value of, and payment for, the good; (2) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and (3) Where appropriate, the production of the good in the form in which the good was exported. (b) Applicability of other recordkeeping requirements. (c) Method of maintenance. § 10.728 Effect of noncompliance; failure to provide documentation regarding third country transportation. (a) General. (b) Failure to provide documentation regarding third country transportation. Rules of Origin § 10.729 Definitions. For purposes of §§ 10.729 through 10.741 of this subpart: (a) Adjusted value. (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incidental to the international shipment of the good from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (n) of this section; (b) Class of motor vehicles. (1) Motor vehicles classified under subheading 8701.20, motor vehicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS; (2) Motor vehicles classified under subheading 8701.10 or under any of subheadings 8701.30 through 8701.90, HTSUS; (3) Motor vehicles provided for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, HTSUS, or motor vehicles classified under subheading 8704.21 or 8704.31; or (4) Motor vehicles classified under subheadings 8703.21 through 8703.90, HTSUS; (c) Exporter. (d) Fungible goods or materials. (e) Generally Accepted Accounting Principles. (f) Good. (g) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. (1) Mineral goods extracted in the territory of one or both of the Parties; (2) Vegetable goods, as such goods are defined in the Harmonized System, harvested in the territory of one or both of the Parties; (3) Live animals born and raised in the territory of one or both of the Parties; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties; (5) Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag; (6) Goods produced exclusively from products referred to in paragraph (g)(5) of this section on board factory ships registered or recorded with a Party and flying its flag; (7) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed; (8) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (9) Waste and scrap derived from: (i) Production in the territory of one or both of the Parties; or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (10) Recovered goods derived in the territory of one or both of the Parties from goods that have passed their life expectancy, or are no longer useable due to defects, and utilized in the territory of one or both of the Parties in the production of remanufactured goods; or (11) Goods produced in one or both of the Parties exclusively from goods referred to in paragraphs (g)(1) through (9) of this section, or from the derivatives of such goods, at any stage of production; (h) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment or buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production. (i) Material. (j) Model line. (k) Net cost. (l) Non-allowable interest costs. (m) Non-originating good or non-originating material. (n) Packing materials and containers for shipment. (o) Producer. (p) Production. (q) Reasonably allocate. (r) Recovered goods. (1) The complete disassembly of goods which have passed their life expectancy, or are no longer useable due to defects, into individual parts; and (2) The cleaning, inspecting, or testing, or other processing that is necessary for improvement to sound working condition of such individual parts; (s) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; (2) Has a similar life expectancy to, and meets the same performance standards as, a like good that is new; and (3) Enjoys a factory warranty similar to a like good that is new; (t) Royalties. (1) Personnel training, without regard to where performed; and (2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services; (u) Sales promotion, marketing, and after-sales service costs. (1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; (2) Sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; (3) Salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing and after-sales service personnel; (4) Recruiting and training of sales promotion, marketing and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; (5) Product liability insurance; (6) Office supplies for sales promotion, marketing and after-sales service of goods, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; (7) Telephone, mail and other communications, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; (8) Rent and depreciation of sales promotion, marketing and after-sales service offices and distribution centers; (9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; and (10) Payments by the producer to other persons for warranty repairs; (v) Self-produced material. (w) Shipping and packing costs. (x) Total cost. (y) Used. (z) Value. § 10.730 Originating goods. Except as otherwise provided in this subpart and General Note 28, HTSUS, a good imported into the customs territory of the United States will be considered an originating good under the AFTA only if: (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties; (b) The good is produced entirely in the territory of one or both of the Parties and: (1) Each non-originating material used in the production of the good undergoes an applicable change in tariff classification specified in General Note 28(n), HTSUS; (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 28(n), HTSUS; or (3) The good meets any other requirements specified in General Note 28(n), HTSUS; (c) The good is produced entirely in the territory of one or both of the Parties exclusively from originating materials; or (d) The good otherwise qualifies as an originating good under General Note 28(n), HTSUS. § 10.731 Textile and apparel goods classifiable as goods put up in sets. Notwithstanding the specific rules set forth in General Note 28(n), HTSUS, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed 10 percent of the value of the set. § 10.732 De minimis. (a) Except as provided in paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to General Note 28(n), HTSUS, is an originating good if: (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content requirement for the good under General Note 28(n), HTSUS; and (3) The good meets all other applicable requirements of General Note 28, HTSUS. (b) Paragraph (a) does not apply to: (1) A non-originating material provided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (2) A non-originating material provided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in one of the following HTSUS provisions: subheading 1901.10, 1901.20 or 1901.90; heading 2105; or subheading 2106.90, 2202.90 or 2309.90; (3) A non-originating material provided for in heading 0805, HTSUS, or subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in subheadings 2009.11 through 2009.39, HTSUS, or in subheading 2106.90 or 2202.90, HTSUS; (4) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514 or 1515, HTSUS; (5) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in headings 1701 through 1703, HTSUS; (6) A non-originating material provided for in Chapter 17, HTSUS, or heading 1805, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; (7) A non-originating material provided for in headings 2203 through 2208, HTSUS, that is used in the production of a good provided for in heading 2207 or 2208, HTSUS; or (8) A non-originating material used in the production of a good provided for in Chapters 1 through 21, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined. (c) A textile or apparel good provided for in Chapters 42, 50 through 63, 70, or 94, HTSUS, that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 28(n), HTSUS, will nevertheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component. Notwithstanding the preceding sentence, a textile or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification of the good will be considered an originating good only if such yarns are wholly formed in the territory of a Party. For purposes of this paragraph, in the case of a textile or apparel good that is a yarn, fabric, or group of fibers, the term “component of the good that determines the tariff classification of the good” means all of the fibers in the yarn, fabric, or group of fibers. § 10.733 Accumulation. (a) Originating materials from the territory of a Party that are used in the production of a good in the territory of another Party will be considered to originate in the territory of that other Party. (b) A good that is produced in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.730 of this subpart and all other applicable requirements of General Note 28, HTSUS. § 10.734 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. (d) Special rule for certain automotive goods General. (2) Net cost method. (i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allocating the resulting net cost of those goods to the automotive good; (ii) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or (iii) Reasonably allocating each cost that forms part of the total costs incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, or non-allowable interest costs. (3) Motor vehicles General. (ii) Categories. (A) The same model line of motor vehicles, in the same class of vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; (B) The same class of motor vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; and (C) The same model line of motor vehicles produced in the territory of a Party as the motor vehicle for which the regional value content is being calculated. (4) Other automotive goods General. (A) Average the amounts calculated under the formula set forth in paragraph (d)(2) of this section over any of the following: The fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quarter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation; (B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or (C) Make a separate determination under paragraph (d)(4)(i)(A) or (B) for automotive goods that are exported to the territory of a Party. (ii) Duration of use. § 10.735 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, of the material with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for exportation to the country of importation); or (3) In the case of a self-produced material, the sum of: (i) All expenses incurred in the production of the material, including general expenses; and (ii) An amount for profit equivalent to the profit added in the normal course of trade. (b) Examples. Example 1. The producer in Australia purchases material x from an unrelated seller in Australia for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for exportation to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, the Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Australia ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Australia by the seller (or by anyone else). So long as the producer acquired material x in Australia, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for exportation to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, the price paid by the producer should be modified so that the value is the transaction value of identical goods sold within Australia at or about the same time the goods were sold to the producer in Australia. Thus, if the seller of material x also sold an identical material to another buyer in Australia without restrictions, that other sale would be used to determine the adjusted value of material x. (c) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (2) Deductions from non-originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; (iv) The cost of processing incurred in the territory of one or both of the Parties in the production of the non-originating material; and (v) The cost of originating materials used in the production of the non-originating material in the territory of one or both of the Parties. (d) Accounting method. § 10.736 Accessories, spare parts, or tools. (a) General. (1) The accessories, spare parts, or tools are not invoiced separately from the good; and (2) The quantities and value of the accessories, spare parts, or tools are customary for the good. (b) Regional value content. § 10.737 Fungible goods and materials. (a) General. (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) Duration of use. § 10.738 Retail packaging materials and containers. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example 1. Australian Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.735(a)(1) of this subpart, the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV − VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, except that the blister packages are originating. In this case, the adjusted value of the originating blister packages would not see § 10.739 Packing materials and containers for shipment. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example. Australian Producer A produces good C. Producer A ships good C to the U.S. in a shipping container which it purchased from Company B in Australia. The shipping container is originating. The value of the shipping container determined under section § 10.735(a)(2) of this subpart is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The United States importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.740 Indirect materials. An indirect material, as defined in § 10.729(h) of this subpart, will be considered to be an originating material without regard to where it is produced, and its value will be the cost registered in the accounting records of the producer of the good. Example. Australian Producer C produces good C using non-originating material A. Producer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.730(b)(1) of this subpart and General Note 28(n), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material A must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced. § 10.741 Third country transportation. (a) General. (b) Documentary evidence. Origin Verifications and Determinations § 10.742 Verification and justification of claim for preferential treatment. (a) Verification. (1) Requests for information from the importer; (2) Written requests for information to the exporter or producer; (3) Requests for the importer to arrange for the exporter or producer to provide information directly to CBP; (4) Visits to the premises of the exporter or producer in Australia, in accordance with procedures that the Parties adopt pertaining to the verification; and (5) Such other procedures as the Parties may agree. (b) Applicable accounting principles. § 10.743 Special rule for verifications in Australia of U.S. imports of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate. (b) Procedures to determine compliance with applicable customs laws and regulations of the U.S. (c) Assistance by U.S. officials to Australian authorities. (d) Treatment of documents and information provided to CBP. (e) Continuation of appropriate action. § 10.744 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment made under § 10.723(a) of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 28, HTSUS, and in §§ 10.729 through 10.741 of this subpart, the legal basis for the determination. Penalties § 10.745 General. Except as otherwise provided in this subpart, all criminal, civil or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regulations will also apply to U.S. importers for violations of the laws and regulations relating to the AFTA. § 10.746 Corrected claim or supporting statement. An importer who makes a corrected claim under § 10.723(b) of this subpart will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect supporting statement, provided that the corrected claim or supporting statement is promptly and voluntarily made pursuant to the terms set forth in § 10.747 of this subpart. § 10.747 Framework for correcting claims or supporting statements. (a) “ Promptly and voluntarily” defined. (1)(i) Done within one year following the date on which the importer made the incorrect claim; or (ii) Done later than one year following the date on which the importer made the incorrect claim, provided the corrected claim is made: (A) Before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (B) Before any of the events specified in § 162.74(i) of this chapter have occurred; or (C) Within 30 days after the importer initially becomes aware that the incorrect claim is not valid; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) Accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (d) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim relates; (2) Identifies each affected import transaction, including each port of importation and the approximate date of each importation; (3) Specifies the nature of the incorrect statements or omissions regarding the claim; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Tender of actual loss of duties. Goods Returned After Repair or Alteration § 10.748 Goods re-entered after repair or alteration in Australia. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. Subpart M—United States-Morocco Free Trade Agreement Source: CBP Dec. 07-51, 72 FR 35651, June 29, 2007, unless otherwise noted. General Provisions § 10.761 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Morocco Free Trade Agreement (the MFTA) signed on June 15, 2004, and under the United States-Morocco Free Trade Agreement Implementation Act (the Act; 118 Stat. 1103). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the MFTA and the Act are contained in Parts 102, 162, and 163 of this chapter. [CBP Dec. 07-51, 72 FR 35651, June 29, 2007, as amended at CBP Dec. 08-29, 73 FR 45354, Aug. 5, 2008] § 10.762 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim of origin. (b) Claim for preferential tariff treatment. (c) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (d) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty; and (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (e) Days. (f) Enterprise. (g) Foreign material. (h) GATT 1994. (i) Good. (j) Harmonized System. Harmonized Commodity Description and Coding System (k) Heading. (l) HTSUS. Harmonized Tariff Schedule of the United States (m) Originating. (n) Party. (o) Person. (p) Preferential tariff treatment. (q) Subheading. (r) Textile or apparel good. (s) Territory. (1) With respect to Morocco, the land, maritime and air space under its sovereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; and (2) With respect to the United States, (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico, (ii) The foreign trade zones located in the United States and Puerto Rico, and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (t) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.763 Filing of claim for preferential tariff treatment upon importation. An importer may make a claim for MFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent documentation, the symbol “MA” as a prefix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an authorized electronic data interchange system. § 10.764 Declaration. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good; (ii) The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the declaration (if different from the information required by paragraph (a)(2)(i) of this section); (iii) The legal name, address, telephone, and e-mail address (if any) of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone, and e-mail address (if any) of the producer of the good (if known); (v) A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading; (vi) A description of the operations performed in the growth, production, or manufacture of the good in the territory of one or both of the Parties and, where applicable, identification of the direct costs of processing operations; (vii) A description of any materials used in the growth, production, or manufacture of the good that are wholly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such materials; (viii) A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 27(h), HTSUS; and (ix) A description of the origin and value of any foreign materials used in the good that have not been substantially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tariff classification specified in General Note 27(h), HTSUS; (3) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all the requirements for preferential tariff treatment specified for those goods in the United States-Morocco Free Trade Agreement; and This document consists of ____pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Applicability of declaration. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the production that qualifies the goods for preferential tariff treatment. § 10.765 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the MFTA; (2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.764 of this subpart; and (3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive information, including cost and sourcing information. (b) I nformation provided by exporter or producer. § 10.766 Declaration not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. § 10.767 Maintenance of records. (a) General. (b) Applicability of other recordkeeping requirements. (c) Method of maintenance. § 10.768 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. see Rules of Origin § 10.769 Definitions. For purposes of §§ 10.769 through 10.777: (a) Exporter. (b) Generally Accepted Accounting Principles. (c) Good. (d) Goods wholly the growth, product, or manufacture of one or both of the Parties. (1) Mineral goods extracted in the territory of one or both of the Parties; (2) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties; (3) Live animals born and raised in the territory of one or both of the Parties; (4) Goods obtained from live animals raised in the territory of one or both of the Parties; (5) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the parties; (6) Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag; (7) Goods produced from goods referred to in paragraph (d)(5) on board factory ships registered or recorded with that Party and flying its flag; (8) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Production or manufacture in the territory of one or both of the Parties, or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (d)(1) through (d)(10) of this section, or from their derivatives, at any stage of production; (e) Importer. (f) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment and buildings; (4) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufacture of a good or used to operate equipment and buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the good but the use of which in the growth, production, or manufacture of the good can reasonably be demonstrated to be a part of that growth, production, or manufacture; (g) Material. (h) Material produced in the territory of one or both of the Parties. (i) New or different article of commerce. (j) Non-originating material. (k) Packing materials and containers for shipment. (l) Recovered goods. (1) The complete disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition; (m) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; (2) Has a similar life expectancy to, and meets the similar performance standards as, a like good that is new; and (3) Enjoys the factory warranty similar to that of a like good that is new; (n) Simple combining or packaging operations. [CBP Dec. 07-51, 72 FR 35651, June 29, 2007, as amended at CBP Dec. 08-29, 73 FR 45354, Aug. 5, 2008] § 10.770 Originating goods. (a) General. (1) The good is wholly the growth, product, or manufacture of one or both of the Parties; (2) The good is a new or different article of commerce, as defined in § 10.769(i) of this subpart, that has been grown, produced, or manufactured in the territory of one or both of the Parties, is provided for in a heading or subheading of the HTSUS that is not covered by the product-specific rules set forth in General Note 27(h), HTSUS, and meets the value-content requirement specified in paragraph (b) of this section; or (3) The good is provided for in a heading or subheading of the HTSUS covered by the product-specific rules set forth in General Note 27(h), HTSUS, and: (i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 27(h), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; or (B) The good otherwise satisfies the requirements specified in General Note 27(h), HTSUS; and (ii) The good meets any other requirements specified in General Note 27, HTSUS. (b) Value-content requirement. see (c) Combining, packaging, and diluting operations. [CBP Dec. 07-51, 72 FR 35651, June 29, 2007, as amended at CBP Dec. 08-29, 73 FR 45354, Aug. 5, 2008] § 10.771 Textile or apparel goods. (a) De minimis. (1) Exception. (2) Yarn, fabric, or group of fibers. (b) Textile or apparel goods put up in sets. § 10.772 Accumulation. (a) An originating good or material produced in the territory of one or both of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party. (b) A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.770 of this subpart and all other applicable requirements of General Note 27, HTSUS. § 10.773 Value of materials. (a) General. (1) The price actually paid or payable for the material by the producer of the good; (2) The freight, insurance, packing and all other costs incurred in transporting the material to the producer's plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section; (3) The cost of waste or spoilage resulting from the use of the material in the growth, production, or manufacture of the good, less the value of recoverable scrap; and (4) Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party. (b) Exception. (1) All expenses incurred in the growth, production, or manufacture of the material, including general expenses; (2) A reasonable amount for profit; and (3) The freight, insurance, packing, and all other costs incurred in transporting the material to the producer's plant. § 10.774 Direct costs of processing operations. (a) Items included. (1) All actual labor costs involved in the growth, production, or manufacture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel; (2) Tools, dies, molds, and other indirect materials, and depreciation on machinery and equipment that are allocable to the specific good; (3) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good; (4) Costs of inspecting and testing the specific good; and (5) Costs of packaging the specific good for export to the territory of the other Party. (b) Items not included. (1) Profit; and (2) General expenses of doing business that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. § 10.775 Packaging and packing materials and containers for retail sale and for shipment. Packaging materials and containers in which a good is packaged for retail sale and packing materials and containers for shipment are to be disregarded in determining whether a good qualifies as an originating good under § 10.770 of this subpart and General Note 27, HTSUS, except to the extent that the value of such packaging and packing materials and containers may be included in meeting the value-content requirement specified in § 10.770(b) of this subpart. § 10.776 Indirect materials. Indirect materials are to be disregarded in determining whether a good qualifies as an originating good under § 10.770 of this subpart and General Note 27, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.770(b) of this subpart. § 10.777 Imported directly. (a) General. (1) Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or (2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party. (b) Documentary evidence. Tariff Preference Level § 10.778 Filing of claim for tariff preference level. A fabric or apparel good described in § 10.779 of this subpart that does not qualify as an originating good under § 10.770 of this subpart may nevertheless be entitled to preferential tariff treatment under the MFTA under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9912.99.20) immediately above the applicable subheading in Chapters 51 through 62 of the HTSUS under which each non-originating fabric or apparel good is classified. § 10.779 Goods eligible for tariff preference claims. The following goods are eligible for a TPL claim filed under § 10.778 of this subpart: (a) Fabric goods. (b) Apparel goods. § 10.780 Transshipment of non-originating fabric or apparel goods. (a) General. (1) Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or (2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or other aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party. (b) Documentary evidence. § 10.781 Effect of noncompliance; failure to provide documentation regarding transshipment of non-originating fabric or apparel goods. (a) Effect of noncompliance. (b) Failure to provide documentation regarding transshipment. Origin Verifications and Determinations § 10.784 Verification and justification of claim for preferential treatment. (a) Verification. (b) Applicable accounting principles. § 10.785 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment made under § 10.763 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 27, HTSUS, and in §§ 10.769 through 10.777 of this subpart, the legal basis for the determination. [CBP Dec. 07-51, 72 FR 35651, June 29, 2007. Redesignated at CBP Dec. 08-29, 73 FR 45354, Aug. 5, 2008] Penalties § 10.786 Violations relating to the MFTA. All criminal, civil, or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regulations will also apply to U.S. importers for violations of the laws and regulations relating to the MFTA. [CBP Dec. 07-51, 72 FR 35651, June 29, 2007. Redesignated at CBP Dec. 08-29, 73 FR 45354, Aug. 5, 2008] Goods Returned After Repair or Alteration § 10.787 Goods re-entered after repair or alteration in Morocco. (a) General. (b) Goods not eligible for treatment. (c) Documentation. [CBP Dec. 07-51, 72 FR 35651, June 29, 2007. Redesignated at CBP Dec. 08-29, 73 FR 45354, Aug. 5, 2008] Subpart N—United States-Bahrain Free Trade Agreement Source: CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, unless otherwise noted. General Provisions § 10.801 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Bahrain Free Trade Agreement (the BFTA) signed on September 14, 2004, and under the United States-Bahrain Free Trade Agreement Implementation Act (the Act; 119 Stat. 3581). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the BFTA and the Act are contained in parts 24, 102, 162, and 163 of this chapter. § 10.802 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim of origin. (b) Claim for preferential tariff treatment. (c) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (d) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994; in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty; and (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (e) Days. (f) Enterprise. (g) Foreign material. (h) GATT 1994. General Agreement on Tariffs and Trade 1994 (i) Good. (j) Harmonized System. Harmonized Commodity Description and Coding System (k) Heading. (l) HTSUS. Harmonized Tariff Schedule of the United States (m) Originating. (n) Party. (o) Person. (p) Preferential tariff treatment. (q) Subheading. (r) Textile or apparel good. (s) Territory. (1) With respect to Bahrain, the territory of Bahrain as well as the maritime areas, seabed, and subsoil over which Bahrain exercises, in accordance with international law, sovereignty, sovereign rights, and jurisdiction; and (2) With respect to the United States, (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico, (ii) The foreign trade zones located in the United States and Puerto Rico, and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; and (t) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.803 Filing of claim for preferential tariff treatment upon importation. An importer may make a claim for BFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent documentation, the symbol “BH” as a prefix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an authorized electronic data interchange system. § 10.804 Declaration. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good; (ii) The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the declaration (if different from the information required by paragraph (a)(2)(i) of this section); (iii) The legal name, address, telephone and e-mail address (if any) of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone and e-mail address (if any) of the producer of the good (if known); (v) A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading; (vi) A description of the operations performed in the growth, production, or manufacture of the good in the territory of one or both of the Parties and, where applicable, identification of the direct costs of processing operations; (vii) A description of any materials used in the growth, production, or manufacture of the good that are wholly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such materials; (viii) A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 30(h), HTSUS; and (ix) A description of the origin and value of any foreign materials used in the good that have not been substantially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tariff classification specified in General Note 30(h), HTSUS; (3) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all the requirements for preferential tariff treatment specified for those goods in the United States-Bahrain Free Trade Agreement; and This document consists of ______ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Applicability of declaration. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the production that qualifies the goods for preferential tariff treatment. [CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, as amended by CBP 08-28, 73 FR 42681, July 23, 2008; CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.805 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the BFTA: (2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.804 of this subpart; and (3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive information, including cost and sourcing information. (b) Information provided by exporter or producer. § 10.806 Declaration not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. § 10.807 Maintenance of records. (a) General. (b) Applicability of other recordkeeping requirements. (c) Method of maintenance. § 10.808 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. see Rules of Origin § 10.809 Definitions. For purposes of §§ 10.809 through 10.817: (a) Exporter. (b) Generally Accepted Accounting Principles. (c) Good. (d) Goods wholly the growth, product, or manufacture of one or both of the Parties. (1) Mineral goods extracted in the territory of one or both of the Parties; (2) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties; (3) Live animals born and raised in the territory of one or both of the Parties; (4) Goods obtained from live animals raised in the territory of one or both of the Parties; (5) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the parties; (6) Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a party and flying its flag; (7) Goods produced from goods referred to in paragraph (d)(6) of this section on board factory ships registered or recorded with that Party and flying its flag; (8) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Production or manufacture in the territory of one or both of the Parties, or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (d)(1) through (d)(10) of this section, or from their derivatives, at any stage of production; (e) Importer. (f) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment and buildings; (4) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufacture of a good or used to operate equipment and buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the good but the use of which in the growth, production, or manufacture of the good can reasonably be demonstrated to be a part of that growth, production, or manufacture; (g) Material. (h) Material produced in the territory of one or both of the Parties. (i) New or different article of commerce. (j) Non-originating material. (k) Packing materials and containers for shipment. (l) Recovered goods. (1) The complete disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition; (m) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; (2) Has a similar life expectancy to, and meets the same performance standards as, a like good that is new; and (3) Enjoys the factory warranty similar to that of a like good that is new; (n) Simple combining or packaging operations. [CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, as amended at CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.810 Originating goods. (a) General. (1) The good is wholly the growth, product, or manufacture of one or both of the Parties; (2) The good is a new or different article of commerce, as defined in § 10.809(i) of this subpart, that has been grown, produced, or manufactured in the territory of one or both of the Parties, is provided for in a heading or subheading of the HTSUS that is not covered by the product-specific rules set forth in General Note 30(h), HTSUS, and meets the value-content requirement specified in paragraph (b) of this section; or (3) The good is provided for in a heading or subheading of the HTSUS covered by the product-specific rules set forth in General Note 30(h), HTSUS, and: (i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 30(h), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; or (B) The good otherwise satisfies the requirements specified in General Note 30(h), HTSUS; and (ii) The good meets any other requirements specified in General Note 30, HTSUS. (b) Value-content requirement. (c) Combining, packaging, and diluting operations. § 10.811 Textile or apparel goods. (a) De minimis General. (2) Exception. (b) Textile or apparel goods put up in sets. [CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, as amended at CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010] § 10.812 Accumulation. (a) An originating good or material produced in the territory of one or both of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party. (b) A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.810 of this subpart and all other applicable requirements of General Note 30, HTSUS. § 10.813 Value of materials. (a) General. (1) The price actually paid or payable for the material by the producer of the good; (2) The freight, insurance, packing and all other costs incurred in transporting the material to the producer's plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section; (3) The cost of waste or spoilage resulting from the use of the material in the growth, production, or manufacture of the good, less the value of recoverable scrap; and (4) Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party. (b) Exception. (1) All expenses incurred in the growth, production, or manufacture of the material, including general expenses; (2) A reasonable amount for profit; and (3) The freight, insurance, packing, and all other costs incurred in transporting the material to the producer's plant. § 10.814 Direct costs of processing operations. (a) Items included. (1) All actual labor costs involved in the growth, production, or manufacture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel; (2) Tools, dies, molds, and other indirect materials, and depreciation on machinery and equipment that are allocable to the specific good; (3) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good; (4) Costs of inspecting and testing the specific good; and (5) Costs of packaging the specific good for export to the territory of the other Party. (b) Items not included. (1) Profit; and (2) General expenses of doing business that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. § 10.815 Packaging and packing materials and containers for retail sale and for shipment. Packaging materials and containers in which a good is packaged for retail sale and packing materials and containers for shipment are to be disregarded in determining whether a good qualifies as an originating good under § 10.810 of this subpart and General Note 30, HTSUS, except to the extent that the value of such packaging and packing materials and containers may be included in meeting the value-content requirement specified in § 10.810(b) of this subpart. § 10.816 Indirect materials. Indirect materials are to be disregarded in determining whether a good qualifies as an originating good under § 10.810 of this subpart and General Note 30, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.810(b) of this subpart. § 10.817 Imported directly. (a) General. (1) Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or (2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party. (b) Documentary evidence. [CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, as amended by CBP Dec. 09-17, 74 FR 23951, May 22, 2009] Tariff Preference Level § 10.818 Filing of claim for tariff preference level. A fabric, apparel, or made-up good described in § 10.819 of this subpart that does not qualify as an originating good under § 10.810 of this subpart may nevertheless be entitled to preferential tariff treatment under the BFTA under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9914.99.20) immediately above the applicable subheading in Chapter 52 through Chapter 63 of the HTSUS under which each non-originating fabric or apparel good is classified. § 10.819 Goods eligible for tariff preference claims. The following goods are eligible for a TPL claim filed under § 10.818 of this subpart (subject to the quantitative limitations set forth in U.S. Note 13, Subchapter XIV, Chapter 99, HTSUS): (a) Cotton or man-made fiber fabric goods provided for in Chapters 52, 54, 55, 58, and 60 of the HTSUS that are wholly formed in the territory of Bahrain from yarn produced or obtained outside the territory of Bahrain or the United States; (b) Cotton or man-made fiber fabric goods provided for in subheadings 5801.21, 5801.22, 5801.23, 5801.24, 5801.25, 5801.26, 5801.31, 5801.32, 5801.33, 5801.34, 5801.35, 5801.36, 5802.11, 5802.19, 5802.20, 5802.30, 5803.10, 5803.90.30, 5804.10.10, 5804.21, 5804.29.10, 5804.30, 5805.00.30, 5805.00.40, 5806.10.10, 5806.10.24, 5806.10.28, 5806.20, 5806.31, 5806.32, 5807.10.05, 5807.10.20, 5807.90.05, 5807.90.20, 5808.10.40, 5808.10.70, 5808.90, 5809.00, 5810.10, 5810.91, 5810.92, 5811.00.20, 5811.00.30, 6001.10, 6001.21, 6001.22, 6001.91, 6001.92, 6002.40, 6002.90, 6003.20, 6003.30, 6003.40, 6004.10, 6004.90, 6005.21, 6005.22, 6005.23, 6005.24, 6005.31, 6005.32, 6005.33, 6005.34, 6005.41, 6005.42, 6005.43, 6005.44, 6006.21, 6006.22, 6006.23, 6006.24, 6006.31, 6006.32, 6006.33, 6006.34, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS that are wholly formed in the territory of Bahrain from yarn spun in the territory of Bahrain or the United States from fiber produced or obtained outside the territory of Bahrain or the United States; (c) Cotton or man-made fiber apparel goods provided for in Chapters 61 or 62 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Bahrain from fabric or yarn produced or obtained outside the territory of Bahrain or the United States; and (d) Cotton or man-made fiber made-up goods provided for in Chapter 63 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Bahrain from fabric wholly formed in Bahrain or the United States from yarn produced or obtained outside the territory of Bahrain or the United States. § 10.820 Certificate of eligibility. Upon request, an importer claiming preferential tariff treatment on a non-originating cotton or man-made fiber good specified in § 10.819 of this subpart must submit to CBP a certificate of eligibility. The certificate of eligibility must be completed and signed by an authorized official of the Government of Bahrain and must be in the possession of the importer at the time the preferential tariff treatment is claimed. § 10.821 Declaration. (a) General. (1) A description of the good, quantity, invoice numbers, and bills of lading; (2) A description of the operations performed in the production of the good in the territory of one or both of the Parties; (3) A reference to the specific provision in § 10.819 of this subpart that forms the basis for the claim for preferential tariff treatment; and (4) A statement as to any fiber, yarn, or fabric of a non-Party and the origin of such materials used in the production of the good. (b) Retention of records. § 10.822 Transshipment of non-originating fabric or apparel goods. (a) General. (1) Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or (2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party. (b) Documentary evidence. [CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, as amended by CBP 08-28, 73 FR 42681, July 23, 2008; CBP Dec. 09-17, 74 FR 23951, May 22, 2009] § 10.823 Effect of non-compliance; failure to provide documentation regarding transshipment of non-originating fabric or apparel goods. (a) General. (b) Failure to provide documentation regarding transshipment. Origin Verifications and Determinations § 10.824 Verification and justification of claim for preferential treatment. (a) Verification. (b) Applicable accounting principles. § 10.825 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment made under § 10.803 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 30, HTSUS, and in §§ 10.809 through 10.817 of this subpart, the legal basis for the determination. Penalties § 10.826 Violations relating to the BFTA. All criminal, civil, or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regulations will also apply to U.S. importers for violations of the laws and regulations relating to the BFTA. Goods Returned After Repair or Alteration § 10.827 Goods re-entered after repair or alteration in Bahrain. (a) General. (b) Goods not eligible for treatment. (c) Documentation. Subpart O—Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 Source: CBP Dec. 07-43, 72 FR 34369, June 22, 2007, unless otherwise noted. § 10.841 Applicability. Title V of Public Law 109-432, entitled the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE I Act), amended the Caribbean Basin Economic Recovery Act (the CBERA, 19 U.S.C. 2701-2707) by adding a new section 213A (19 U.S.C. 2703A) to authorize the President to extend additional trade benefits to Haiti. part I, Subtitle D, Title XV of Public Law 110-234, entitled the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II Act) amended certain provisions within section 213A. Section 213A of the CBERA provides for the duty-free treatment of certain apparel articles and certain wiring sets from Haiti. The provisions of this subpart set forth the legal requirements and procedures that apply for purposes of obtaining duty-free treatment pursuant to CBERA section 213A. [CBP Dec. 08-24, 73 FR 56725, Sept. 30, 2008] § 10.842 Definitions. As used in this subpart, the following terms have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Apparel articles. (b) Applicable one-year period. (1) Initial applicable one-year period. (2) Second applicable one-year period. (3) Third applicable one-year period. (4) Fourth applicable one-year period. (5) Fifth applicable one-year period. (c) Customs territory of the United States. (d) Declared customs value. (e) Enter; entry. (f) Entity controlling production. (g) Fabric component. (h) Foreign material. (i) HTSUS. (j) Knit-to-shape articles. (k) Knit-to-shape components. (l) Major parts. (m) Producer. (n) Self-start edge. (o) Subheading. (p) Wholly assembled in Haiti. (q) Wholly the growth, product, or manufacture. [CBP Dec. 07-43, 72 FR 34369, June 22, 2007, as amended by CBP Dec. 08-24, 73 FR 56725, Sept. 30, 2008] § 10.843 Articles eligible for duty-free treatment. The duty-free treatment referred to in § 10.841 of this subpart applies to the articles described in paragraphs (a) through (j) of this section that are imported directly from Haiti or the Dominican Republic into the customs territory of the United States and to the articles described in paragraph (k) of this section that are imported directly from Haiti into the customs territory of the United States. (a) Certain apparel articles. (1) The individual entry method ( see (2) The annual aggregation method ( see (b) Certain woven apparel articles. (c) Brassieres. (d) Certain knit apparel articles General. (2) Exclusions. (i) The following apparel articles of cotton, for men or boys, that are classifiable in subheading 6109.10.00 of the HTSUS: (A) All white T-shirts, with short hemmed sleeves and hemmed bottom, with crew or round neckline or with V-neck and with a mitered seam at the center of the V, and without pockets, trim, or embroidery; (B) All white singlets, without pockets, trim, or embroidery; and (C) Other T-shirts, but not including thermal undershirts; (ii) T-shirts for men or boys that are classifiable in subheading 6109.90.10 of the HTSUS; (iii) The following apparel articles of cotton, for men or boys, that are classifiable in subheading 6110.20.20 of the HTSUS: (A) Sweatshirts; and (B) Pullovers, other than sweaters, vests, or garments imported as part of playsuits; or (iv) Sweatshirts for men or boys, of man-made fibers and containing less than 65 percent by weight of man-made fibers, that are classifiable in subheading 6110.30.30 of the HTSUS. (e) Other apparel articles. (1) Any apparel article that is of a type listed in chapter rule 3, 4, or 5 for chapter 61 of the HTSUS (as such chapter rules are contained in section A of the Annex to Presidential Proclamation 8213 of December 20, 2007) as being excluded from the scope of such chapter rule, when such chapter rule is applied to determine whether an apparel article is an originating good for purposes of General Note 29(n), HTSUS, except that, for purposes of this provision, reference in such chapter rules to subheading 6104.12.00 of the HTSUS is deemed to refer to subheading 6104.19.60 of the HTSUS; or (2) Any apparel article (other than articles to which paragraph (c) of this section applies (brassieres)) that is of a type listed in chapter rule 3(a), 4(a), or 5(a) for chapter 62 of the HTSUS, as such chapter rules are contained in paragraph 9 of section A of the Annex to Presidential Proclamation 8213 of December 20, 2007. (f) Luggage and similar items. (g) Headgear. (h) Certain sleepwear. (1) Pajama bottoms and other sleepwear for women and girls, of cotton, that are classifiable in subheading 6208.91.30, HTSUS, or of man-made fibers, that are classifiable in subheading 6208.92.00, HTSUS; or (2) Pajama bottoms and other sleepwear for girls, of other textile materials, that are classifiable in subheading 6208.99.20, HTSUS. (i) Earned import allowance rule. (j) Apparel articles of short supply materials. (1) Fabrics or yarns, to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabrics or yarns, under Annex 401 of the North American Free Trade Agreement (NAFTA); or (2) Fabrics or yarns, to the extent that such fabrics or yarns are designated as not being available in commercial quantities for purposes of: (i) Section 213(b)(2)(A)(v) of the CBERA (19 U.S.C. 2703(b)(2)(A)(v)); (ii) Section 112(b)(5) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)(5)); (iii) Section 204(b)(3)(B)(i)(III) or 204(b)(3)(B)(ii) of the Andean Trade Preference Act (19 U.S.C. 3203(b)(3)(B)(i)(II) or 3203(b)(3)(B)(ii)); or (iv) Any other provision, relating to determining whether a textile or apparel article is an originating good eligible for preferential treatment, of a law that implements a free trade agreement entered into by the United States that is in effect at the time the claim for preferential tariff treatment is made under § 10.847 of this subpart. (k) Wiring sets. (1) Wholly the growth, product, or manufacture of Haiti; or (2) A new or different article of commerce that has been grown, produced, or manufactured in Haiti. [CBP Dec. 07-43, 72 FR 34369, June 22, 2007, as amended by CBP Dec. 08-24, 73 FR 56725, Sept. 30, 2008] § 10.844 Value-content requirement. (a) Certain apparel articles General. (i) 50 percent or more of the declared customs value of the articles entered during the initial applicable one-year period, the second applicable one-year period, and the third applicable one-year period; (ii) 55 percent or more of the declared customs value of the articles entered during the fourth applicable one-year period; and (iii) 60 percent or more of the declared customs value of the articles entered during the fifth applicable one-year period. (2) Annual aggregation Initial applicable one-year period. (ii) Other applicable one-year periods. (iii) Exclusions from annual aggregation calculation. Example. A Haitian producer elects to use the annual aggregation method in the initial applicable one-year period, and also elects to include in the aggregation calculation an entry of apparel articles receiving preferential tariff treatment under another preference program. The producer ships to the United States four shipments during the initial applicable one-year period and all are entered during that period. The first shipment of apparel (qualifying for and receiving preference under the Caribbean Basin Trade Partnership Act (CBTPA)) has an appraised value of $100,000 and meets a value-content percentage (under § 10.844(a) of this section) of 80%. The second shipment of apparel is wholly assembled in Haiti, has an appraised value of $100,000, and meets a value-content percentage of 40%. The third shipment is wholly assembled in Haiti, has an appraised value of $50,000, and meets a value-content percentage of 0%. The last shipment is wholly assembled in Haiti, has an appraised value of $20,000, and meets a value-content requirement of 80%. Taken together, the four shipments have an appraised value of $270,000 and meet a value-content percentage of 50.4%. The apparel articles shipped to the United States in the last three shipments would qualify for duty-free treatment under section 213A(b)(1) of the CBERA and § 10.843(a) of this subpart as the applicable value-content requirement for the initial applicable one-year period (50 %) is satisfied. This conclusion assumes that: The CBTPA-eligible apparel articles in the first shipment (that were included in the annual aggregation calculation at the election of the producer) were wholly assembled or knit-to-shape in Haiti, as required in § 10.844(a)(2)(iii) of this section; and the articles in the last three shipments that were wholly assembled in Haiti satisfy all other applicable requirements set forth in this subpart. (3) Election to use the annual aggregation method for an applicable one-year period. (4) Failure to meet applicable requirements Initial applicable one-year period. (A) All apparel articles of the producer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered under the annual aggregation method during that initial applicable one-year period will be denied duty-free treatment; (B) Those apparel articles of the producer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered on an individual entry basis and that fail to meet the requirements of § 10.843(a)(1) of this subpart or the applicable value-content requirement set forth in paragraph (a)(1) of this section during that initial applicable one-year period will be denied duty-free treatment. However, apparel articles of the producer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered on an individual entry basis prior to an election being made by the producer or entity controlling production to use the annual aggregation method will be considered to have met the applicable value-content requirement if that requirement is met through application of the individual entry method; and (C) All apparel articles of the producer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart, whether entered on an individual entry or annual aggregation basis, will be not be eligible for duty-free treatment during the succeeding applicable one-year periods until the increased percentage in the value-content requirement specified in paragraph (a)(4)(iii) of this section has been met by all the apparel articles of that producer or entity controlling production that are wholly assembled or knit-to-shape in Haiti and are entered during the immediately preceding applicable one-year period, unless the articles qualify for tariff benefits pursuant to the provisions of § 10.845 of this subpart. (ii) Other applicable one-year periods. (A) Those apparel articles of the producer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered on an individual entry basis and that fail to meet the requirements of § 10.843(a)(1) or the applicable value-content requirement set forth in paragraph (a)(1) of this subpart during that applicable one-year period will be denied duty-free treatment; and (B) All apparel articles of the producer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart, whether entered on an individual entry or annual aggregation basis, will not be eligible for duty-free treatment during the succeeding applicable one-year periods until the increased percentage in the value-content requirement specified in paragraph (a)(4)(iii) of this section has been met by all the apparel articles of that producer or entity controlling production that are wholly assembled or knit-to-shape in Haiti and are entered during the immediately preceding applicable one-year period, unless the articles qualify for tariff benefits pursuant to the provisions of § 10.845 of this subpart. (iii) Entity controlling production of apparel articles of a producer also producing for its own account. Example. Importer D, an entity controlling production, purchases apparel articles that meet the description in § 10.843(a) of this subpart from Haitian Producers A, B, and C and enters those articles during the initial applicable one-year period. Importer D elects to use the annual aggregation method during that period. The three producers also produce apparel for other U.S. importers and each producer elects to use the annual aggregation method. The apparel articles purchased by Importer D from the three producers and entered during the initial applicable one-year period meet a value-content percentage of 51.7%. However, the value-content percentage met by all the apparel that is wholly assembled in Haiti by Producer C and entered (including the apparel imported by Importer D) during the initial applicable one-year period is 49%. As all of the articles, in the aggregate, purchased by Importer D from the three producers and entered during the initial applicable one-year period satisfy the applicable value-content requirement (50%), all of these articles are entitled to duty-free treatment under section 213A(b)(1) of the CBERA and § 10.843(a) of this subpart, assuming all other applicable requirements are met. The failure of Producer C to meet the 50% value-content requirement with respect to all of the articles that it wholly assembled in Haiti and entered during the initial applicable one-year period will not prevent duty-free status being claimed for the articles purchased by Importer D from Producer C. Therefore, the consequences of Producer C's failure to meet the 50% value-content requirement include the denial of preferential tariff treatment for all articles that are wholly assembled in Haiti by Producer C and entered during the initial applicable one-year period, except for see (iv) Increased percentage. (v) Articles of a new producer or entity controlling production. Example 1. A Haitian producer begins production of apparel articles that meet the description in § 10.843(a) of this subpart during the second applicable one-year period and elects to use the annual aggregation method for each applicable one-year period. The producer's articles entered during the second applicable one-year period meet a value-content percentage of 55%; articles entered during the third applicable one-year period meet a value-content percentage of 65%; and articles entered during the fourth applicable one-year period meet a value-content percentage of 55%. The producer's articles may not receive duty-free treatment during the second applicable one-year period because there was no production (and thus no entered articles) during the immediately preceding period (the initial applicable one-year period) on which to assess compliance with the applicable value-content requirement. The producer's articles also may not receive duty-free treatment during the third applicable one-year period because the increased value-content percentage requirement (50% plus 10% = 60%) was not met in the immediately preceding period (the second applicable one-year period). However, the producer's articles are eligible for duty-free treatment during the fourth applicable one-year period based on compliance with the 60% value-content percentage requirement in the immediately preceding period (the third applicable one-year period). The producer's articles also are eligible for duty-free treatment during the fifth applicable one-year period based on compliance with the 55% value-content percentage requirement in the immediately preceding period (the fourth applicable one-year period). Example 2. Same facts as in example 1, except that the producer elects to use the individual entry method for purposes of meeting the applicable value-content requirement for each applicable one-year period. The producer's articles entered during the second applicable one-year period are eligible for duty-free treatment because these articles meet the requisite 50% value-content requirement. The producer's articles also may receive duty-free treatment during the third, fourth, and fifth applicable one-year periods based on compliance with the applicable value-content requirements for each of those periods set forth in paragraph (a)(1) of this section. (vi) Notification of compliance with the increased percentage General. (B) Contents. (C) Effect of noncompliance. (5) Inclusion of the cost of fabrics or yarns not available in commercial quantities in value-content requirement. (i) The cost of fabrics or yarns to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabrics or yarns, under Annex 401 of the NAFTA; and (ii) The cost of fabrics or yarns (without regard to their source) that are designated as not being available in commercial quantities for purposes of: (A) Section 213(b)(2)(A)(v) of the CBERA (19 U.S.C. 2703(b)(2)(A)(v)); (B) Section 112(b)(5) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)(5)); (C) Section 204(b)(3)(B)(i)(III) or 204(b)(3)(B)(ii) of the Andean Trade Preference Act (19 U.S.C. 3203(b)(3)(B)(i)(III) or 3203(b)(3)(B)(ii)); or (D) Any other provision, relating to determining whether a textile or apparel article is an originating good eligible for preferential treatment, of a law that implements a free trade agreement that enters into force with respect to the United States. (b) Wiring sets. (c) Eligible countries described. (1) The United States; (2) Israel, Canada, Mexico, Jordan, Singapore, Chile, Australia, Morocco, Bahrain, El Salvador, Honduras, Nicaragua, Guatemala, Dominican Republic, and any other country that is a party to a free trade agreement with the United States that is in effect on December 20, 2006, or that enters into force thereafter; and (3) The designated beneficiary countries listed in General Notes 11 (Andean Trade Preference Act), 16 (African Growth and Opportunity Act), and 17 (Caribbean Basin Trade Partnership Act) of the HTSUS. (d) Cost or value of materials Materials produced in Haiti or one or more eligible countries described in paragraph (c) of this section defined Certain apparel articles. (A) Wholly obtained or produced, within the meaning of § 102.1(g) of this chapter, in Haiti or one or more eligible countries described in paragraph (c) of this section; or (B) Determined to originate in Haiti or one or more eligible countries described in paragraph (c) of this section by application of the provisions of § 102.21 of this chapter. (ii) Wiring sets. (A) Wholly the growth, product, or manufacture of Haiti or one or more eligible countries described in paragraph (c) of this section; or (B) Substantially transformed in Haiti or one or more eligible countries described in paragraph (c) of this section into a new or different article of commerce which is then used in Haiti in the production of a new or different article of commerce that is imported into the United States. (2) Determination of cost or value of materials Costs included. ( 1 ( 2 ( 3 ( 4 (B) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of: ( 1 ( 2 ( 3 (ii) Costs deducted in regard to certain apparel articles. (A) Any foreign materials used in the production of the apparel articles in Haiti; and (B) Any foreign materials used in the production of the materials produced in Haiti or one or more eligible countries described in paragraph (c) of this section. (e) Direct costs of processing operations Items included. (i) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific articles, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; (ii) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific articles; (iii) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific articles; and (iv) Costs of inspecting and testing the specific articles. (2) Items not included. (i) Profit; and (ii) General expenses of doing business that either are not allocable to the specific articles or are not related to the growth, production, manufacture, or assembly of the articles, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. [CBP Dec. 07-43, 72 FR 34369, June 22, 2007, as amended by CBP Dec. 08-24, 73 FR 56728, Sept. 30, 2008] § 10.845 Retroactive application of duty-free treatment for certain apparel articles. (a) General. (b) Conditions and requirements. (1) The articles in such entry would have received duty-free treatment if they had satisfied the requirements of § 10.843(a) and the applicable value-content requirement set forth in § 10.844(a) of this subpart; (2) A declaration of compliance with the increased value-content percentage is submitted to CBP within 30 days following the end of the applicable one-year period during which the increased percentage is met ( see (3) A request for liquidation or reliquidation with respect to such entry is filed with CBP before the 90th day after CBP determines and notifies the importer that the apparel articles of the producer or entity controlling production satisfy the increased value-content percentage set forth in § 10.844(a)(4)(iii) of this subpart during that applicable one-year period. Example. A Haitian producer of articles that meet the description in § 10.843(a) of this subpart begins exporting those articles to the United States during the initial applicable one-year period and elects to use the annual aggregation method for purposes of meeting the applicable value-content requirement. The articles entered during that initial period meet a value-content percentage of 48%, while articles entered during the second applicable one-year period meet a value-content percentage of 62%. The producer's articles may not receive duty-free treatment during the initial applicable one-year period because the requisite 50% value-content requirement was not met. The producer's articles also are ineligible for duty-free treatment during the second applicable one-year period because the 50% value-content requirement was not met in the immediately preceding period (the initial applicable one-year period). However, because the producer's articles entered during the second applicable one-year period satisfy the increased value-content percentage requirement (60%), the importer(s) of these articles may file a request for and receive a refund of the duties paid with respect to the articles entered during that period, assuming compliance with the conditions and requirements set forth in § 10.847 of this subpart. In addition, the producer's articles entered during the third applicable one-year period are eligible for duty-free treatment based on compliance with the increased value-content percentage in the second applicable one-year period. § 10.846 Imported directly. (a) Textile and apparel articles. (1) Direct shipment from Haiti or the Dominican Republic to the United States without passing through the territory of any intermediate country; (2) If shipment is from Haiti or the Dominican Republic to the United States through the territory of an intermediate country, the articles in the shipment do not enter into the commerce of the intermediate country and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If shipment is through an intermediate country and the invoices and other documents do not show the United States as the final destination, the articles in the shipment are imported directly only if they: (i) Remained under the control of the customs authority in the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of a sale other than at retail; and (iii) Have not been subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition. (b) Wiring sets. (1) Direct shipment from Haiti to the United States without passing through the territory of any intermediate country; (2) If shipment is from Haiti to the United States through the territory of an intermediate country, the articles in the shipment do not enter into the commerce of the intermediate country and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or (3) If shipment is through an intermediate country and the invoices and other documents do not show the United States as the final destination, the articles in the shipment are imported directly only if they: (i) Remained under the control of the customs authority in the intermediate country; (ii) Did not enter into the commerce of the intermediate country except for the purpose of a sale other than at retail; and (iii) Have not been subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition. (c) Documentary evidence. [CBP Dec. 08-24, 73 FR 56728, Sept. 30, 2008] § 10.847 Filing of claim for duty-free treatment. (a) General. (1) Subheading 9820.61.25 for apparel articles described in § 10.843(a) of this subpart for which the individual entry method is used for purposes of meeting the applicable value-content requirement set forth in § 10.844(a) of this subpart; (2) Subheading 9820.61.30 for apparel articles described in § 10.843(a) of this subpart for which the annual aggregation method is used for purposes of meeting the applicable value-content requirement set forth in § 10.844(a) of this subpart; (3) Subheading 9820.62.05 for apparel articles described in § 10.843(b) of this subpart; (4) Subheading 9820.62.12 for brassieres described in § 10.843(c) of this subpart; (5) Subheading 9820.61.35 for apparel articles described in § 10.843(d) of this subpart; (6) Subheading 9820.61.40 for apparel articles described in § 10.843(e) of this subpart; (7) Subheading 9820.42.05 for articles described in § 10.843(f) of this subpart; (8) Subheading 9820.65.05 for articles described in § 10.843(g) of this subpart; (9) Subheading 9820.62.20 for articles described in § 10.843(h) of this subpart; (10) Subheading 9820.62.25 for articles described in § 10.843(i) of this subpart; (11) Subheading 9820.62.30 for articles described in § 10.843(j) of this subpart; and (12) Subheading 9820.85.44 for wiring sets described in § 10.843(k) of this subpart. (b) Restriction on claims submitted under subheading 9820.61.30, HTSUS. see (c) Corrected claim. [CBP Dec. 07-43, 72 FR 34369, June 22, 2007, as amended by CBP Dec. 08-24, 73 FR 56728, Sept. 30, 2008] § 10.848 Declaration of compliance. (a) General. (b) Effect of noncompliance Initial applicable one-year period. (2) Other applicable one-year periods. (c) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The applicable one-year period during which the aggregation method was used (year beginning December 20, 20__, year ending December 19, 20__); (ii) The legal name, address, telephone, fax number, e-mail address (if any), and identification number of the importer of record, and the legal name, telephone, and e-mail address (if any) of the point of contact; (iii) With respect to each entry for which duty-free treatment is claimed for apparel articles described in § 10.843(a) of this subpart and for which the aggregation method is used, the entry number, line number(s), port of entry, and line value; (iv) If the producer or entity controlling production elects to include in the aggregation calculation entries of brassieres receiving duty-free treatment under § 10.843(c) of this subpart and entries of apparel articles that are wholly assembled or knit-to-shape in Haiti and that are receiving preferential tariff treatment under any provision of law other than section 213A of the CBERA or are subject to the rate of duty in the “General” subcolumn of column 1 of the HTSUS ( see (v) The value-content percentage that was met during the applicable one-year period with respect to each producer or entity controlling production; (vi) The name and title of the person who prepared the declaration of compliance. The declaration must be prepared and signed by a responsible official of the importer or by the importer's authorized agent having knowledge of the relevant facts; (vii) Signature of the person who prepared the declaration of compliance; and (viii) Date the declaration of compliance was prepared and signed; and (3) Must include as an attachment to the declaration a copy of a certification from each producer or entity controlling production setting forth its election to use the annual aggregation method, a description of the classes or kinds of apparel articles involved, and the name and address of each producer or entity controlling production. § 10.849 Importer obligations. (a) General. (1) Will be deemed to have certified that the article is eligible for duty-free treatment under this subpart; (2) Is responsible for the truthfulness of the statements and information contained in the declaration of compliance, if that document is required to be submitted to CBP pursuant to §§ 10.844(a)(4)(v) or 10.848(a) of this subpart; and (3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. When requested, CBP may arrange for the direct submission by the exporter, producer, or entity controlling production of business confidential or other sensitive information, including cost and sourcing information. (b) Information provided by exporter, producer, or entity controlling production. § 10.850 Verification of claim for duty-free treatment. (a) General. (b) Documentation and information subject to verification. (1) All records required to be made, kept, and made available to CBP by the importer, the producer, the entity controlling production, or any other person under part 163 of this chapter; and (2) The documentation and information set forth in paragraphs (b)(2)(i) through (b)(2)(v) of this section, when requested by CBP. This documentation and information may be made available to CBP by the importer or the importer may arrange to have the documentation and information made available to CBP directly by the exporter, producer, or entity controlling production: (i) Documentation and other information regarding all apparel articles that meet the requirements specified in § 10.843(a) of this subpart that were exported to the United States and that were entered during the applicable one-year period, whether or not a claim for duty-free treatment was made under § 10.847 of this subpart. Those records and other information include, but are not limited to, work orders and other production records, purchase orders, invoices, bills of lading and other shipping documents; (ii) Records to document the cost of all yarn, fabric, fabric components, and knit-to-shape components that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work orders and other production records, and inventory control records; (iii) Records to document the direct costs of processing operations performed in Haiti or one or more eligible countries described in § 10.844(c) of this subpart, such as direct labor and fringe expenses, machinery and tooling costs, factory expenses, and testing and inspection expenses that were incurred in production; (iv) Affidavits or statements of origin that certify who manufactured the yarn, fabric, fabric components and knit-to-shape components. The affidavit or statement of origin should include a product description, name and address of the producer, and the date the articles were produced. An affidavit for fabric components should state whether or not subassembly operations occurred; and (v) Summary accounting and financial records which relate to the source records provided for in paragraphs (b)(2)(i) through (b)(2)(iii) of this section. Subpart P—United States-Oman Free Trade Agreement Source: CBP Dec. 11-01, 76 FR 701, Jan. 6, 2011, unless otherwise noted. General Provisions § 10.861 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Oman Free Trade Agreement (the OFTA) signed on January 19, 2006, and under the United States-Oman Free Trade Agreement Implementation Act (the Act; 120 Stat. 1191). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the OFTA and the Act are contained in Parts 24, 162, and 163 of this chapter. § 10.862 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994, in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty; and (3) Fee or other charge in connection with importation; (c) Days. (d) Enterprise. (e) Foreign material. (f) GATT 1994. General Agreement on Tariffs and Trade 1994, (g) Good. (h) Harmonized System. Harmonized Commodity Description and Coding System, (i) Heading. (j) HTSUS. Harmonized Tariff Schedule of the United States (k) Originating. (l) Party. (m) Person. (n) Preferential tariff treatment. (o) Subheading. (p) Textile or apparel good. (q) Territory. (1) With respect to Oman, all the lands of Oman within its geographical boundaries, the internal waters, maritime areas including the territorial sea, and airspace under its sovereignty, and the exclusive economic zone and continental shelf where Oman exercises sovereign rights and jurisdiction in accordance with its domestic law and international law, including the United Nations Convention on the Law of the Sea; and (2) With respect to the United States, (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico, (ii) The foreign trade zones located in the United States and Puerto Rico, and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; and (r) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.863 Filing of claim for preferential tariff treatment upon importation. An importer may make a claim for OFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent documentation, the symbol “OM” as a prefix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an authorized electronic data interchange system. § 10.864 Declaration. (a) Contents. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must include the following information: (i) The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good; (ii) The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the declaration (if different from the information required by paragraph (a)(2)(i) of this section); (iii) The legal name, address, telephone and e-mail address (if any) of the exporter of the good (if different from the producer); (iv) The legal name, address, telephone and e-mail address (if any) of the producer of the good (if known); (v) A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading; (vi) A description of the operations performed in the growth, production, or manufacture of the good in territory of one or both of the Parties and, where applicable, identification of the direct costs of processing operations; (vii) A description of any materials used in the growth, production, or manufacture of the good that are wholly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such materials; (viii) A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 31(h), HTSUS; and (ix) A description of the origin and value of any foreign materials used in the good that have not been substantially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tariff classification specified in General Note 31(h), HTSUS; (3) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all the requirements for preferential tariff treatment specified for those goods in the United States-Oman Free Trade Agreement; and This document consists of ______ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Applicability of declaration. (1) A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or (2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the production that qualifies the goods for preferential tariff treatment. [CBP Dec. 11-01, 76 FR 701, Jan. 6, 2011, as amended by CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.865 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the OFTA; (2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.864 of this subpart; and (3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive information, including cost and sourcing information. (b) Information provided by exporter or producer. § 10.866 Declaration not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. [CBP Dec. 11-01, 76 FR 701, Jan. 6, 2011, as amended by CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.867 Maintenance of records. (a) General. (b) Applicability of other recordkeeping requirements. (c) Method of maintenance. § 10.868 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. see Post-Importation Duty Refund Claims § 10.869 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.870 of this subpart. Subject to the provisions of § 10.868 of this subpart, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.871(c) of this part. § 10.870 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written declaration stating that the good qualified as an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) A written statement indicating whether or not the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was provided, the statement must identify each recipient by name, CBP identification number and address and must specify the date on which the documentation was provided; and (3) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. § 10.871 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. Rules of Origin § 10.872 Definitions. For purposes of §§ 10.872 through 10.880: (a) Exporter. (b) Generally Accepted Accounting Principles. (c) Good. (d) Goods wholly the growth, product, or manufacture of one or both of the Parties. (1) Mineral goods extracted in the territory of one or both of the Parties; (2) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties; (3) Live animals born and raised in the territory of one or both of the Parties; (4) Goods obtained from live animals raised in the territory of one or both of the Parties; (5) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the Parties; (6) Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag; (7) Goods produced from goods referred to in paragraph (d)(6) of this section on board factory ships registered or recorded with that Party and flying its flag; (8) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Production or manufacture in the territory of one or both of the Parties, or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (d)(1) through (d)(10) of this section, or from their derivatives, at any stage of production; (e) Importer. (f) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment and buildings; (4) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufacture of a good or used to operate equipment and buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the good but the use of which in the growth, production, or manufacture of the good can reasonably be demonstrated to be a part of that growth, production, or manufacture; (g) Material. (h) Material produced in the territory of one or both of the Parties. (i) New or different article of commerce. (1) Has been substantially transformed from a good or material that is not wholly the growth, product, or manufacture of one of both of the Parties; and (2) Has a new name, character, or use distinct from the good or material from which it was transformed; (j) Non-originating material. (k) Packing materials and containers for shipment. (l) Recovered goods. (1) The disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition; (m) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; (2) Has a similar life expectancy to a like good that is new; and (3) Enjoys the factory warranty similar to that of a like good that is new; (n) Simple combining or packaging operations. (o) Substantially transformed. (1) The good or material is converted from a good that has multiple uses into a good or material that has limited uses; (2) The physical properties of the good or material are changed to a significant extent; or (3) The operation undergone by the good or material is complex by reason of the number of different processes and materials involved and the time and level of skill required to perform those processes. § 10.873 Originating goods. (a) General. (1) The good is wholly the growth, product, or manufacture of one or both of the Parties; (2) The good is a new or different article of commerce, as defined in § 10.872(i) of this subpart, that has been grown, produced, or manufactured in the territory of one or both of the Parties, is provided for in a heading or subheading of the HTSUS that is not covered by the product-specific rules set forth in General Note 31(h), HTSUS, and meets the value-content requirement specified in paragraph (b) of this section; or (3) The good is provided for in a heading or subheading of the HTSUS covered by the product-specific rules set forth in General Note 31(h), HTSUS, and: (i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 31(h), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; or (B) The good otherwise satisfies the requirements specified in General Note 31(h), HTSUS; and (ii) The good meets any other requirements specified in General Note 31, HTSUS. (b) Value-content requirement. (c) Combining, packaging, and diluting operations. § 10.874 Textile or apparel goods. (a) De minimis General. (2) Exception. (b) Textile or apparel goods put up in sets. § 10.875 Accumulation. (a) An originating good or material produced in the territory of one or both of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party. (b) A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.873 of this subpart and all other applicable requirements of General Note 31, HTSUS. § 10.876 Value of materials. (a) General. (1) The price actually paid or payable for the material by the producer of the good; (2) The freight, insurance, packing and all other costs incurred in transporting the material to the producer's plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section; (3) The cost of waste or spoilage resulting from the use of the material in the growth, production, or manufacture of the good, less the value of recoverable scrap; and (4) Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party. (b) Exception. (1) All expenses incurred in the growth, production, or manufacture of the material, including general expenses; (2) A reasonable amount for profit; and (3) The freight, insurance, packing, and all other costs incurred in transporting the material to the producer's plant. § 10.877 Direct costs of processing operations. (a) Items included. (1) All actual labor costs involved in the growth, production, or manufacture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel; (2) Tools, dies, molds, and other indirect materials, and depreciation on machinery and equipment that are allocable to the specific good; (3) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good; (4) Costs of inspecting and testing the specific good; and (5) Costs of packaging the specific good for export to the territory of the other Party. (b) Items not included. (1) Profit; and (2) General expenses of doing business that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. § 10.878 Packaging and packing materials and containers for retail sale and for shipment. Packaging materials and containers in which a good is packaged for retail sale and packing materials and containers for shipment are to be disregarded in determining whether a good qualifies as an originating good under § 10.873 of this subpart and General Note 31, HTSUS, except that the value of such packaging and packing materials and containers may be included in meeting the value-content requirement specified in § 10.873(b) of this subpart. § 10.879 Indirect materials. Indirect materials are to be disregarded in determining whether a good qualifies as an originating good under § 10.873 of this subpart and General Note 31, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.873(b) of this subpart. § 10.880 Imported directly. (a) General. (1) Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or (2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party. (b) Documentary evidence. Tariff Preference Level § 10.881 Filing of claim for tariff preference level. A cotton or man-made fiber apparel good described in § 10.882 of this subpart that does not qualify as an originating good under § 10.873 of this subpart may nevertheless be entitled to preferential tariff treatment under the OFTA under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9916.99.20) immediately above the applicable subheading in Chapter 61 or Chapter 62 of the HTSUS under which each non-originating cotton or man-made fiber apparel good is classified. § 10.882 Goods eligible for tariff preference claims. Cotton or man-made fiber apparel goods provided for in Chapters 61 or 62 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Oman from fabric or yarn produced or obtained outside the territory of Oman or the United States are eligible for a TPL claim filed under § 10.881 of this subpart (subject to the quantitative limitations set forth in U.S. Note 13, Subchapter XVI, Chapter 99, HTSUS). § 10.883 [Reserved] § 10.884 Declaration. (a) General. (1) A description of the good, quantity, invoice numbers, and bills of lading; (2) A description of the operations performed in the production of the good in the territory of one or both of the Parties; (3) A statement as to any yarn or fabric of a non-Party and the origin of such materials used in the production of the good. (b) Retention of records. § 10.885 Transshipment of non-originating apparel goods. (a) General. (1) Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or (2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party. (b) Documentary evidence. § 10.886 Effect of non-compliance; failure to provide documentation regarding transshipment of non-originating apparel goods. (a) General. (b) Failure to provide documentation regarding transshipment. Origin Verifications and Determinations § 10.887 Verification and justification of claim for preferential treatment. (a) Verification. (b) Applicable accounting principles. § 10.888 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment made under § 10.863 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 31, HTSUS, and in §§ 10.863 through 10.886 of this subpart, the legal basis for the determination. Penalties § 10.889 Violations relating to the OFTA. All criminal, civil, or administrative penalties which may be imposed upon importers or other parties for violations of the U.S. customs or related laws or regulations will also apply to importations subject to the OFTA. Goods Returned After Repair or Alteration § 10.890 Goods re-entered after repair or alteration in Oman. (a) General. (b) Goods not eligible for treatment. (c) Documentation. Subpart Q—United States-Peru Trade Promotion Agreement Source: 76 FR 68072, Nov. 3, 2011, unless otherwise noted. General Provisions § 10.901 Scope. This subpart implements the duty preference and related customs provisions applicable to imported and exported goods under the United States-Peru Trade Promotion Agreement (the PTPA) signed on April 12, 2006, and under the United States-Peru Trade Promotion Agreement Implementation Act (the Act; Pub. L. 110-138, 121 Stat. 1455 (19 U.S.C. 3805 note). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the PTPA and the Act are contained in Parts 24, 162, and 163 of this chapter. § 10.902 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Claim of origin. (c) Customs authority. (d) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's domestic law; or (3) Fee or other charge in connection with importation; (e) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (f) Days. (g) Enterprise. (h) GATT 1994. General Agreement on Tariffs and Trade 1994, WTO Agreement; (i) Harmonized System. Harmonized Commodity Description and Coding System, (j) Heading. (k) HTSUS. Harmonized Tariff Schedule of the United States (l) Identical goods. (m) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment or buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production; (n) Originating. (o) Party. (p) Person. (q) Preferential tariff treatment. (r) Subheading. (s) Textile or apparel good. (t) Territory. (1) With respect to Peru, the continental territory, the islands, the maritime areas and the air space above them, in which Peru exercises sovereignty and jurisdiction or sovereign rights in accordance with its domestic law and international law; (2) With respect to the United States: (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (u) WTO. (v) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.903 Filing of claim for preferential tariff treatment upon importation. (a) Basis of claim. (1) A certification, as specified in § 10.904 of this subpart, that is prepared by the importer, exporter, or producer of the good; or (2) The importer's knowledge that the good is an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good. (b) Making a claim. (c) Corrected claim. see § 10.904 Certification. (a) General. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim; (3) Must include the following information: (i) The legal name, address, telephone, and email address (if any) of the importer of record of the good, the exporter of the good (if different from the producer), and the producer of the good; (ii) The legal name, address, telephone, and email address (if any) of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by paragraph (a)(3)(i) of this section); (iii) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (iv) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 32(n), HTSUS; and (v) The applicable rule of origin set forth in General Note 32, HTSUS, under which the good qualifies as an originating good; and (4) Must include a statement, in substantially the following form: I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all requirements for preferential tariff treatment specified for those goods in the United States-Peru Trade Promotion Agreement; and This document consists of ________ pages, including all attachments. (b) Responsible official or agent. (c) Language. (d) Certification by the exporter or producer. (1) The exporter's or producer's knowledge that the good is originating; or (2) In the case of an exporter, reasonable reliance on the producer's certification that the good is originating. (e) Applicability of certification. (1) A single shipment of a good into the United States; or (2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification. (f) Validity of certification. § 10.905 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the PTPA; (2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.904 of this subpart; (3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the submission of supporting documents, the importer will provide to CBP, or arrange for the direct submission by the exporter or producer of, all information relied on by the exporter or producer in preparing the certification. (b) Information provided by exporter or producer. (c) Exemption from penalties. see § 10.906 Certification not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. [76 FR 68072, Nov. 3, 2011, as amended by CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.907 Maintenance of records. (a) General. (b) Method of maintenance. § 10.908 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. Export Requirements § 10.909 Certification for goods exported to Peru. (a) Submission of certification to CBP. (b) Notification of errors in certification. see (c) Maintenance of records General. (i) The purchase, cost, and value of, and payment for, the good; (ii) The purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and (iii) The production of the good in the form in which the good was exported. (2) Method of maintenance. (3) Availability of records. Post-Importation Duty Refund Claims § 10.910 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.911 of this subpart. Subject to the provisions of § 10.908 of this subpart, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.912(c) of this subpart. § 10.911 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written declaration stating that the good was an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) A copy of a certification prepared in accordance with § 10.904 of this subpart if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment; (3) A written statement indicating whether the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identification number, and address and must specify the date on which the documentation was provided; and (4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. § 10.912 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. Rules of Origin § 10.913 Definitions. For purposes of §§ 10.913 through 10.925: (a) Adjusted value. (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (m) of this section; (b) Class of motor vehicles. (1) Motor vehicles provided for in subheading 8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS, or motor vehicles for the transport of 16 or more persons provided for in subheading 8702.10 or 8702.90, HTSUS; (2) Motor vehicles provided for in subheading 8701.10 or any of subheadings 8701.30 through 8701.90, HTSUS; (3) Motor vehicles for the transport of 15 or fewer persons provided for in subheading 8702.10 or 8702.90, HTSUS, or motor vehicles provided for in subheading 8704.21 or 8704.31, HTSUS; or (4) Motor vehicles provided for in subheadings 8703.21 through 8703.90, HTSUS; (c) Exporter. (d) Fungible good or material. (e) Generally Accepted Accounting Principles. (f) Good. (g) Goods wholly obtained or produced entirely in the territory of one or more of the Parties. (1) Plants and plant products harvested or gathered in the territory of one or both of the Parties; (2) Live animals born and raised in the territory of one or more of the Parties; (3) Goods obtained in the territory of one or both of the Parties from live animals; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties; (5) Minerals and other natural resources not included in paragraphs (g)(1) through (g)(4) of this section that are extracted or taken in the territory of one or both of the Parties; (6) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of the Parties by: (i) Vessels registered or recorded with Peru and flying its flag; or (ii) Vessels documented under the laws of the United States; (7) Goods produced on board factory ships from the goods referred to in aragraph (g)(6) of this section, if such factory ships are: (i) Registered or recorded with Peru and fly its flag; or (i) Documented under the laws of the United States; (8) Goods taken by a Party or a person of a Party from the seabed or subsoil outside territorial waters, if a Party has rights to exploit such seabed or subsoil; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Manufacturing or processing operations in the territory of one or both of the Parties; or (ii) Used goods collected in the territory of one or both of the Parties, if such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of one or both of the Parties from used goods, and used in the territory of one or both of the Parties in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in any of paragraphs (g)(1) through (g)(10) of this section, or from the derivatives of such goods, at any stage of production; (h) Material. (i) Model line. (j) Net cost. (k) Non-allowable interest costs. (l) Non-originating good or non-originating material. (m) Packing materials and containers for shipment. (n) Producer. (o) Production. (p) Reasonably allocate. (q) Recovered goods. (1) The disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition; (r) Remanufactured good. (1) Is entirely or partially comprised of recovered goods; and (2) Has a similar life expectancy and enjoys a factory warranty similar to a new good that is classified in one of the enumerated HTSUS chapters or headings; (s) Royalties. (1) Personnel training, without regard to where performed; and (2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services; (t) Sales promotion, marketing, and after-sales service costs. (1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing, and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; (2) Sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; (3) Salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing, and after-sales service personnel; (4) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (5) Product liability insurance; (6) Office supplies for sales promotion, marketing, and after-sales service of goods, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (7) Telephone, mail and other communications, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (8) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers; (9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; and (10) Payments by the producer to other persons for warranty repairs; (u) Self-produced material. (v) Shipping and packing costs. (w) Total cost. (x) Used. (y) Value. § 10.914 Originating goods. Except as otherwise provided in this subpart and General Note 32(m), HTSUS, a good imported into the customs territory of the United States will be considered an originating good under the PTPA only if: (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties; (b) The good is produced entirely in the territory of one or both of the Parties and: (1) Each non-originating material used in the production of the good undergoes an applicable change in tariff classification specified in General Note 32(n), HTSUS, and the good satisfies all other applicable requirements of General Note 32, HTSUS; or (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 32(n), HTSUS, and satisfies all other applicable requirements of General Note 32, HTSUS; or (c) The good is produced entirely in the territory of one or both of the Parties exclusively from originating materials. § 10.915 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. (d) Special rule for certain automotive goods General. (2) Net cost method. (i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allocating the resulting net cost of those goods to the automotive good; (ii) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or (iii) Reasonably allocating each cost that forms part of the total costs incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or non-allowable interest costs. (3) Motor vehicles General. (ii) Categories. (A) The same model line of motor vehicles, in the same class of vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; (B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; and (C) The same model line of motor vehicles produced in the territory of a Party as the motor vehicle for which the regional value content is being calculated. (4) Other automotive goods General. (A) Average the amounts calculated under the formula set forth in paragraph (d)(2) of this section over any of the following: The fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quarter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation; (B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or (C) Make a separate determination under paragraph (d)(4)(i)(A) or (d)(4)(i)(B) of this section for automotive goods that are exported to the territory of Peru or the United States. (ii) Duration of use. § 10.916 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, of the material with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation); or (3) In the case of a self-produced material, the sum of: (i) All expenses incurred in the production of the material, including general expenses; and (ii) An amount for profit equivalent to the profit added in the normal course of trade. (b) Examples. Example 1. A producer in Peru purchases material x from an unrelated seller in Peru for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Peru ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Peru by the seller (or by anyone else). So long as the producer acquired material x in Peru, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within Peru at or about the same time the goods were sold to the producer in Peru. Thus, if the seller of material x also sold an identical material to another buyer in Peru without restrictions, that other sale would be used to determine the adjusted value of material x. (c) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (2) Deductions from non-originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of one or both of the Parties. (d) Accounting method. § 10.917 Accumulation. (a) Originating materials from the territory of a Party that are used in the production of a good in the territory of another Party will be considered to originate in the territory of that other Party. (b) A good that is produced in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.914 of this subpart and all other applicable requirements of General Note 32, HTSUS. § 10.918 De minimis. (a) General. (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content requirement for the good under General Note 32(n), HTSUS; and (3) The good meets all other applicable requirements of General Note 32, HTSUS. (b) Exceptions. (1) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (2) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, that is used in the production of the following goods: (i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS; (ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS; (iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS; (iv) Goods provided for in heading 2105, HTSUS; (v) Beverages containing milk provided for in subheading 2202.90, HTSUS; and (vi) Animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90, HTSUS; and (3) A non-originating material provided for in heading 0805, HTSUS, or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in any of subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheading 2106.90 or 2202.90, HTSUS; (4) A non-originating material provided for in heading 0901 or 2101, HTSUS, that is used in the production of a good provided for in heading 0901 or 2101, HTSUS; (5) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good provided for in Chapter 15, HTSUS; (6) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in any of headings 1701 through 1703, HTSUS; (7) A non-originating material provided for in Chapter 17, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; and (8) Except as provided in paragraphs (b)(1) through (b)(7) of this section and General Note 32(n), HTSUS, a non-originating material used in the production of a good provided for in any of Chapters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this subpart. (c) Textile and apparel goods General. (i) The total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or (ii) The yarns are nylon filament yarns (other than elastomeric yarns) that are provided for in subheading 5402.11.30, 5402.11.60, 5402.19.30, 5402.19.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00, or 5402.61.00, HTSUS, and that are products of Canada, Mexico, or Israel. (2) Exception for goods containing elastomeric yarns. (3) Yarn, fabric, or fiber. [76 FR 68072, Nov. 3, 2011, as amended at 77 FR 64032, Oct. 18, 2012] § 10.919 Fungible goods and materials. (a) General. (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) Duration of use. § 10.920 Accessories, spare parts, or tools. (a) General. (1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good, regardless of whether they are specified or separately identified in the invoice for the good; and (2) The quantities and value of the accessories, spare parts, or tools are customary for the good. (b) Regional value content. § 10.921 Goods classifiable as goods put up in sets. Notwithstanding the specific rules set forth in General Note 32(n), HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless: (a) Each of the goods in the set is an originating good; or (b) The total value of the non-originating goods in the set does not exceed; (1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or (2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set. § 10.922 Retail packaging materials and containers. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example 1. Peruvian Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.916(a)(1) of this subpart, the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV − VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, except that the blister packages are originating. In this case, the adjusted value of the originating blister packages would not see § 10.923 Packing materials and containers for shipment. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example. Peruvian producer A produces good C. Producer A ships good C to the United States in a shipping container that it purchased from Company B in Peru. The shipping container is originating. The value of the shipping container determined under section § 10.916(a)(2) of this subpart is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.924 Indirect materials. An indirect material, as defined in § 10.902(m) of this subpart, will be considered to be an originating material without regard to where it is produced. Example. Peruvian Producer A produces good C using non-originating material B. Producer A imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.914(b)(1) of this subpart and General Note 32(n), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material B must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced. § 10.925 Transit and transshipment. (a) General. (1) Undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or (2) Does not remain under the control of customs authorities in the territory of a non-Party. (b) Documentary evidence. Origin Verifications and Determinations § 10.926 Verification and justification of claim for preferential tariff treatment. (a) Verification. (1) Written requests for information from the importer, exporter, or producer; (2) Written questionnaires to the importer, exporter, or producer; (3) Visits to the premises of the exporter or producer in the territory of Peru, to review the records of the type referred to in § 10.909(c)(1) of this subpart or to observe the facilities used in the production of the good, in accordance with the framework that the Parties develop for conducting verifications; and (4) Such other procedures to which the Parties may agree. (b) Applicable accounting principles. § 10.927 Special rule for verifications in Peru of U.S. imports of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made, if CBP determines there is insufficient information to support the claim; (ii) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that an enterprise has provided incorrect information to support the claim; (iii) Detention of any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect information, to support the claim; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided incorrect information as to, the country of origin of any such good. (b) Procedures to determine compliance with applicable customs laws and regulations of the United States General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to support a claim for preferential tariff treatment with respect to any such good; (ii) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information to support a claim for preferential tariff treatment with respect to any such good; (iii) Detention of any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect information, to support a claim for preferential tariff treatment with respect to any such good; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided incorrect information as to, the country of origin of any such good. (c) Denial of permission to conduct a verification. (d) Assistance by U.S. officials in conducting a verification abroad. (e) Continuation of appropriate action. § 10.928 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment under this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 32, HTSUS, and in §§ 10.913 through 10.925 of this subpart, the legal basis for the determination. § 10.929 Repeated false or unsupported preference claims. Where verification or other information reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the PTPA rules of origin set forth in General Note 32, HTSUS, CBP may suspend preferential tariff treatment under the PTPA to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 32, HTSUS. Penalties § 10.930 General. Except as otherwise provided in this subpart, all criminal, civil, or administrative penalties which may be imposed on U.S. importers, exporters, and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the laws and regulations relating to the PTPA. § 10.931 Corrected claim or certification by importers. An importer who makes a corrected claim under § 10.903(c) of this subpart will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certification, provided that the corrected claim is promptly and voluntarily made. § 10.932 Corrected certification by U.S. exporters or producers. Civil or administrative penalties provided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notification pursuant to § 10.909(b) with respect to the making of an incorrect certification. § 10.933 Framework for correcting claims or certifications. (a) “ Promptly and voluntarily” defined. (1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or (iii) Done within 30 days after the importer, exporter, or producer initially becomes aware that the claim or certification is incorrect; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) In the case of a corrected claim or certification by an importer, accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (d) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim or certification relates; (2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, including each port of importation and the approximate date of each importation; (3) Specifies the nature of the incorrect statements or omissions regarding the claim or certification; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Tender of actual loss of duties. Goods Returned After Repair or Alteration § 10.934 Goods re-entered after repair or alteration in Peru. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. Subpart R—United States-Korea Free Trade Agreement Source: 77 FR 15948, Mar. 19, 2012, unless otherwise noted. General Provisions § 10.1001 Scope. This subpart implements the duty preference and related customs provisions applicable to imported and exported goods under the United States-Korea Free Trade Agreement (the UKFTA) signed on June 30, 2007, and under the United States-Korea Free Trade Agreement Implementation Act (the Act; Pub. L. 112-41, 125 Stat. 428 (19 U.S.C. 3805 note)). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the UKFTA and the Act are contained in parts 24, 162, and 163 of this chapter. § 10.1002 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. Claim for preferential tariff treatment (b) Claim of origin. Claim of origin (c) Customs duty. Customs duty Customs Act, (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994, in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's law; or (3) Fee or other charge in connection with importation commensurate with the cost of services rendered. (d) Customs Valuation Agreement. Customs Valuation Agreement Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (e) Days. Days (f) Enterprise. Enterprise (g) Enterprise of a Party. Enterprise of a Party (h) GATT 1994. GATT 1994 General Agreement on Tariffs and Trade 1994, (i) Goods of a Party. Goods of a Party (j) Harmonized System. Harmonized System Harmonized Commodity Description and Coding System, (k) Heading. Heading (l) HTSUS. HTSUS Harmonized Tariff Schedule of the United States (m) Identical goods. Identical goods (n) Indirect material. Indirect material (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment or buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other goods that are not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production; (o) Korea. Korea (p) Originating. Originating (q) Party. Party (r) Person. Person (s) Person of a Party. Person of a Party (t) Preferential tariff treatment. Preferential tariff treatment (u) Subheading. Subheading (v) Textile or apparel good. Textile or apparel good (w) Territory. Territory (1) With respect to Korea, the land, maritime, and air space over which Korea exercises sovereignty, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas over which it may exercise sovereign rights or jurisdiction in accordance with international law and its domestic law; and (2) With respect to the United States, (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise sovereign rights with respect to the seabed and subsoil and their natural resources; (x) WTO. WTO (y) WTO Agreement. WTO Agreement Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.1003 Filing of claim for preferential tariff treatment upon importation. (a) Basis of claim. (1) A written or electronic certification, as specified in § 10.1004 of this subpart, that is prepared by the importer, exporter, or producer of the good; or (2) The importer's knowledge that the good is an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good. (b) Making a claim. (c) Corrected claim. see § 10.1004 Certification. (a) General. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim; (3) Must include the following information: (i) The legal name, address, telephone, and email address (if any) of the importer of record of the good (if known), the exporter of the good (if different from the producer), and the producer of the good (if known); (ii) The legal name, address, telephone, and email address (if any) of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by paragraph (a)(3)(i) of this section); (iii) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (iv) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 33(o), HTSUS; and (v) The applicable rule of origin set forth in General Note 33, HTSUS, under which the good qualifies as an originating good; (vi) Date of certification; (vii) In case of a blanket certification issued with respect to the multiple shipments of identical goods within any period specified in the written or electronic certification, not exceeding 12 months from the date of certification, the period that the certification covers; and (4) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all requirements for preferential tariff treatment specified for those goods in the United States-Korea Free Trade Agreement; and This document consists of ____ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Certification by the exporter or producer. (i) The exporter's or producer's knowledge that the good is originating; or (ii) In the case of an exporter, reasonable reliance on the producer's written or electronic certification that the good is originating. (2) The Center director may not require an exporter or producer to provide a written or electronic certification to another person. (e) Applicability of certification. (1) A single shipment of a good into the United States; or (2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification. (f) Validity of certification. § 10.1005 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the UKFTA; (2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.1004 of this subpart; and (3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the submission of supporting documents, the importer will provide to CBP, or arrange for the direct submission by the exporter or producer of, all information relied on by the exporter or producer in preparing the certification. (b) Information provided by exporter or producer. (c) Exemption from penalties. see § 10.1006 Certification not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. [77 FR 15948, Mar. 19, 2012, as amended by CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.1007 Maintenance of records. (a) General. (b) Method of maintenance. § 10.1008 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. Export Requirements § 10.1009 Certification for goods exported to Korea. (a) Submission of certification to CBP. (b) Notification of errors in certification. see (c) Maintenance of records General. (i) The purchase, cost, and value of, and payment for, the good; (ii) The purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and (iii) The production of the good in the form in which the good was exported. (2) Method of maintenance. (3) Availability of records. [77 FR 15948, Mar. 19, 2012, as amended at 78 FR 32358, May 30, 2013] Post-Importation Duty Refund Claims § 10.1010 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.1011 of this subpart. Subject to the provisions of § 10.1008 of this subpart, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.1012(c) of this subpart. § 10.1011 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written or electronic declaration or statement stating that the good was an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) A copy of a written or electronic certification prepared in accordance with § 10.1004 of this subpart if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment; (3) A written statement indicating whether the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identification number, and address and must specify the date on which the documentation was provided; and (4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. § 10.1012 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. Rules of Origin § 10.1013 Definitions. For purposes of §§ 10.1013 through 10.1025: (a) Adjusted value. Adjusted value (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (m) of this section; (b) Class of motor vehicles. Class of motor vehicles (1) Motor vehicles classified under subheading 8701.20, HTSUS, motor vehicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, HTSUS, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 87.05 or 87.06, HTSUS; (2) Motor vehicles classified under subheading 8701.10 or subheading 8701.30 through 8701.90, HTSUS; (3) Motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, HTSUS and motor vehicles classified under subheading 8704.21 or 8704.31, HTSUS; or (4) Motor vehicles classified under subheading 8703.21 through 8703.90, HTSUS; (c) Exporter. Exporter (d) Fungible goods or materials. Fungible goods or materials (e) Generally Accepted Accounting Principles. Generally Accepted Accounting Principles (f) Good. Good (g) Goods wholly obtained or produced entirely in the territory of one or more of the Parties. Goods wholly obtained or produced entirely in the territory of one or both of the Parties (1) Plants and plant products grown, and harvested or gathered, in the territory of one or both of the Parties; (2) Live animals born and raised in the territory of one or both of the Parties; (3) Goods obtained in the territory of one or both of the Parties from live animals; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties; (5) Minerals and other natural resources not included in paragraphs (g)(1) through (g)(4) extracted or taken from the territory of one or both of the Parties; (6) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of the Parties by: (i) A vessel that is registered or recorded with Korea and flying the flag of Korea; or (ii) A vessel that is documented under the laws of the United States; (7) Goods produced on board factory ships from the goods referred to in paragraph (g)(6), if such factory ship: (i) Is registered or recorded with Korea and flies the flag of Korea; or (ii) Is a vessel that is documented under the laws of the United States; (8) Goods taken by a Party or a person of a Party from the seabed or subsoil outside the territory of one or both of the Parties, provided that Party has rights to exploit such seabed or subsoil; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Manufacturing or processing operations in the territory of one or both of the Parties; or (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of one or both of the Parties from used goods, and used in the territory of one or both of the Parties in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (g)(1) through (g)(10) of this section, or from their derivatives, at any stage of production; (h) Material. Material (i) Model line. Model line (j) Net cost. Net cost (k) Non-allowable interest costs. Non-allowable interest costs (l) Non-originating good or non-originating material. Non-originating good non-originating material (m) Packing materials and containers for shipment. Packing materials and containers for shipment (n) Producer. Producer (o) Production. Production (p) Reasonably allocate. Reasonably allocate (q) Reasonable suspicion of unlawful activity. Reasonable suspicion of unlawful activity (1) Historical evidence of non-compliance with laws or regulations governing importations by an importer or exporter; (2) Historical evidence of non-compliance with laws or regulations governing importations by a manufacturer, producer, or other person involved in the movement of goods from the territory of one Party to the territory of the other Party; (3) Historical evidence that some or all of the persons involved in the movement from the territory of one Party to the territory of the other Party of goods within a specific product sector have not complied with a Party's laws and regulations governing importations; or (4) Other information that the requesting Party and the Party from whom the information is requested agree is sufficient in the context of a particular request; (r) Recovered goods. Recovered goods (1) The disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition; (s) Remanufactured goods. Remanufactured goods (1) Are entirely or partially comprised of recovered goods as defined in § 10.1013(r) and, (2) Have a similar life expectancy and enjoy a factory warranty similar to such new goods; (t) Royalties. Royalties (1) Personnel training, without regard to where performed; and (2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services; (u) Sales promotion, marketing, and after-sales service costs. Sales promotion, marketing, and after-sales service costs (1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing, and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; (2) Sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; (3) Salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing, and after-sales service personnel; (4) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (5) Product liability insurance; (6) Office supplies for sales promotion, marketing, and after-sales service of goods, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (7) Telephone, mail and other communications, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (8) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers; (9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; and (10) Payments by the producer to other persons for warranty repairs; (v) Self-produced material. Self-produced material (w) Shipping and packing costs. Shipping and packing costs (x) Total cost. Total cost (y) Used. Used (z) Value. Value § 10.1014 Originating goods. Except as otherwise provided in this subpart and General Note 33(n), HTSUS, a good imported into the customs territory of the United States will be considered an originating good under the UKFTA only if: (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties; (b) The good is produced entirely in the territory of one or both of the Parties and: (1) Each non-originating material used in the production of the good undergoes an applicable change in tariff classification specified in General Note 33(o), HTSUS, and the good satisfies all other applicable requirements of General Note 33, HTSUS; or (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 33(o), HTSUS, and satisfies all other applicable requirements of General Note 33, HTSUS; or (c) The good is produced entirely in the territory of one or both of the Parties exclusively from originating materials. § 10.1015 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. (d) Special rule for certain automotive goods General. (2) Net cost method. (i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allocating the resulting net cost of those goods to the automotive good; (ii) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or (iii) Reasonably allocating each cost that forms part of the total costs incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or non-allowable interest costs. (3) Motor vehicles General. (ii) Categories. (A) The same model line of motor vehicles, in the same class of vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; (B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; and (C) The same model line of motor vehicles produced in the territory of a Party as the motor vehicle for which the regional value content is being calculated. (4) Other automotive goods General. (A) Average the amounts calculated under the formula set forth in paragraph (d)(2) of this section over any of the following: the fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quarter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation; (B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or (C) Make a separate determination under paragraph (d)(4)(i)(A) or (B) of this section for automotive goods that are exported to the territory of Korea or the United States. (ii) Duration of use. § 10.1016 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, of the material, i.e., in the same manner as for imported goods, with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation); or (3) In the case of a self-produced material, the sum of: (i) All the costs incurred in the production of the material, including general expenses; and (ii) An amount for profit equivalent to the profit added in the normal course of trade. (b) Examples. Example 1. A producer in Korea purchases material x from an unrelated seller in Korea for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Korea ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Korea by the seller (or by anyone else). So long as the producer acquired material x in Korea, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within Korea at or about the same time the goods were sold to the producer in Korea. Thus, if the seller of material x also sold an identical material to another buyer in Korea without restrictions, that other sale would be used to determine the adjusted value of material x. (c) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight (“cost of freight” includes the costs of all types of freight, including in-land freight incurred within a Party's territory, regardless of the mode of transportation), insurance, packing, and all other costs incurred in transporting the material within a Party's territory or between the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (2) Deductions from non-originating materials. (i) The costs of freight (“cost of freight” includes the costs of all types of freight, including in-land freight incurred within a Party's territory, regardless of the mode of transportation), insurance, packing, and all other costs incurred in transporting the material within a Party's territory or between the territories of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of a Party. (d) Accounting method. § 10.1017 Accumulation. (a) Originating goods or materials from the territory of one Party, incorporated into a good in the territory of the other Party will be considered to originate in the territory of that other Party. (b) A good that is produced in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.1014 of this subpart and all other applicable requirements of General Note 33, HTSUS. § 10.1018 De minimis. (a) General. (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content requirement for the good under General Note 33, HTSUS; and (3) The good meets all other applicable requirements of General Note 33, HTSUS. (b) Exceptions. (1) A non-originating material provided for in Chapter 3, HTSUS, that is used in the production of a good classified in that Chapter; (2) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids classified under subheadings 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (3) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, which is used in the production of the following goods: (i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS; (ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS; (iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS; (iv) Goods provided for in heading 2105, HTSUS; (v) Beverages containing milk provided for in subheading 2202.90, HTSUS; or (vi) Animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90, HTSUS; (4) A non-originating material provided for in Chapter 7, HTSUS that is used in the production of a good classified under the following subheadings: 0703.10, 0703.20, 0709.59, 0709.60, 0710.21 through 0710.80, 0711.90, 0712.20, 0712.39 through 0713.10 or 0714.20, HTSUS; (5) A non-originating material provided for in heading 1006, HTSUS, or a non-originating rice product classified in Chapter 11, HTSUS that is used in the production of a good provided for under the headings 1006, 1102, 1103, 1104, HTSUS, or subheadings 1901.20 or 1901.90, HTSUS; (6) A non-originating material provided for in heading 0805, HTSUS or subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for under subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for under subheadings 2106.90 or 2202.90, HTSUS; (7) Non-originating peaches, pears, or apricots provided for in Chapters 8 or 20, HTSUS, that are used in the production of a good classified under heading 2008, HTSUS; (8) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good classified under headings 1501 through 1508, 1512, 1514, or 1515, HTSUS; (9) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in any of headings 1701 through 1703, HTSUS; (10) A non-originating material provided for in Chapter 17, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; or (11) Except as provided in paragraphs (b)(1) through (10) of this section and General Note 33, HTSUS, a non-originating material used in the production of a good provided for in any of Chapters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this subpart. (c) Textile and apparel goods General. (2) Exception for goods containing elastomeric yarns. (3) For purposes of this section, “ wholly formed or finished wholly formed or finished § 10.1019 Fungible goods and materials. (a) General. inventory management method (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) Duration of use. § 10.1020 Accessories, spare parts, or tools. (a) General. (1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good; and (2) The quantities and value of the accessories, spare parts, or tools are customary for the good. (b) Regional value content. § 10.1021 Goods classifiable as goods put up in sets. Notwithstanding the specific rules set forth in General Note 33, HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless: (a) Each of the goods in the set is an originating good; or (b) The total value of the non-originating goods in the set does not exceed: (1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or (2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set. § 10.1022 Retail packaging materials and containers. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example 1. Korean Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.1016(a)(1) of this subpart, the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV − VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, except that the blister packages are originating. In this case, the adjusted value of the originating blister packages would not see § 10.1023 Packing materials and containers for shipment. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example. Korean producer A produces good C. Producer A ships good C to the United States in a shipping container that it purchased from Company B in Korea. The shipping container is originating. The value of the shipping container determined under § 10.1016(a)(2) of this subpart is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.1024 Indirect materials. An indirect material, as defined in § 10.1002(n) of this subpart, will be disregarded for the purpose of determining whether a good is originating. Example. Korean Producer A produces good C using non-originating material B. Producer A imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.1014(b)(1) of this subpart and General Note 33, each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material B must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are disregarded for purposes of determining whether the good is originating. § 10.1025 Transit and transshipment. (a) General. (1) Undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or (2) Does not remain under the control of customs authorities in the territory of a non-Party. (b) Documentary evidence. Origin Verifications and Determinations § 10.1026 Verification and justification of claim for preferential tariff treatment. (a) Verification. (1) Written requests for information from the importer, exporter, or producer; (2) Written questionnaires to the importer, exporter, or producer; (3) Visits to the premises of the exporter or producer in the territory of Korea, to review the records of the type referred to in § 10.1009(c)(1) of this subpart or to observe the facilities used in the production of the good, in accordance with the framework that the Parties develop for conducting verifications; and (4) Such other procedures to which the Parties may agree. (b) Applicable accounting principles. § 10.1027 Special rule for verifications in Korea of U.S. imports of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate General. (2) Actions during a verification. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that the enterprise has provided insufficient or incorrect information to support the claim; and (ii) Denying entry to the textile or apparel good for which a claim for preferential tariff treatment or a claim of origin has been made that is the subject of a verification, if CBP determines that the enterprise has provided insufficient or incorrect information to support the claim. (b) Procedures to determine compliance with applicable customs laws and regulations of the United States General. (2) Actions during a verification. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided insufficient or incorrect information with respect to its obligations under the applicable customs laws, regulations, and procedures regarding trade in textile and apparel goods; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification, if CBP determines that the enterprise has provided insufficient or incorrect information with respect to its obligations under the applicable customs laws, regulations, and procedures regarding trade in textile and apparel goods. (c) Action by U.S. officials in conducting a verification abroad. (d) Denial of permission to conduct a verification. (e) Continuation of appropriate action. [77 FR 15948, Mar. 19, 2012, as amended at 78 FR 32358, May 30, 2013] § 10.1028 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment under this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 33, HTSUS, and in §§ 10.1013 through 10.1025 of this subpart, the legal basis for the determination. § 10.1029 Repeated false or unsupported preference claims. Where verification or other information reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the UKFTA rules of origin set forth in General Note 33, HTSUS, CBP may suspend preferential tariff treatment under the UKFTA to entries of identical goods covered by subsequent statements, declarations, or certifications by that importer, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 33, HTSUS. Penalties § 10.1030 General. Except as otherwise provided in this subpart, all criminal, civil, or administrative penalties which may be imposed on U.S. importers, exporters, and producers for violations of the customs and related U.S. laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the U.S. laws and regulations relating to the UKFTA. § 10.1031 Corrected claim or certification by importers. An importer who makes a corrected claim under § 10.1003(c) of this subpart will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certification, provided that the corrected claim is promptly and voluntarily made. § 10.1032 Corrected certification by U.S. exporters or producers. Civil or administrative penalties provided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notification pursuant to § 10.1009(b) with respect to the making of an incorrect certification. § 10.1033 Framework for correcting claims or certifications. (a) “ Promptly and voluntarily” defined. (1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or (iii) Done within 30 days after the importer, exporter, or producer initially becomes aware that the claim or certification is incorrect; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) In the case of a corrected claim or certification by an importer, accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (d) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim or certification relates; (2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, including each port of importation and the approximate date of each importation; (3) Specifies the nature of the incorrect statements or omissions regarding the claim or certification; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Tender of actual loss of duties. Goods Returned After Repair or Alteration § 10.1034 Goods re-entered after repair or alteration in Korea. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. Subpart S—United States-Panama Trade Promotion Agreement Source: 78 FR 63056, Oct. 23, 2013, unless otherwise noted. General Provisions § 10.2001 Scope. This subpart implements the duty preference and related customs provisions applicable to imported and exported goods under the United States-Panama Trade Promotion Agreement (the PANTPA) signed on June 28, 2007, and under the United States-Panama Trade Promotion Agreement Implementation Act (“the Act”), Public Law 112-43, 125 Stat. 497 (19 U.S.C. 3805 note). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the PANTPA and the Act are contained in parts 24, 162, and 163 of this chapter. § 10.2002 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Claim of origin. (c) Customs authority. (d) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's domestic law; or (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (e) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (f) Days. (g) Enterprise. (h) Enterprise of a Party. (i) Goods of a Party. (j) GATT 1994. General Agreement on Tariffs and Trade 1994, WTO Agreement; (k) Harmonized System. Harmonized Commodity Description and Coding System, (l) Heading. (m) HTSUS. Harmonized Tariff Schedule of the United States (n) Identical goods. (o) Originating. (p) Party. (q) Person. (r) Preferential tariff treatment. (s) Subheading. (t) Textile or apparel good. (u) Territory. (1) With respect to Panama, the land, maritime, and the air space under Panama's sovereignty and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; (2) With respect to the United States: (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (v) WTO. (w) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.2003 Filing of claim for preferential tariff treatment upon importation. (a) Basis of claim. (1) A written or electronic certification, as specified in § 10.2004, that is prepared by the importer, exporter, or producer of the good; or (2) The importer's knowledge that the good is an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good. (b) Making a claim. (c) Corrected claim. see § 10.2004 Certification. (a) General. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim; (3) Must include the following information: (i) The legal name, address, telephone number, and email address of the certifying person; (ii) If not the certifying person, the legal name, address, telephone number, and email address of the importer of record, the exporter, and the producer of the good, if known; (iii) The legal name, address, telephone number, and email address of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by paragraph (a)(3)(i) of this section); (iv) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (v) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 35, HTSUS; (vi) The applicable rule of origin set forth in General Note 35, HTSUS, under which the good qualifies as an originating good; (vii) Date of certification; and (viii) In case of a blanket certification issued with respect to multiple shipments of identical goods within any period specified in the written or electronic certification, not exceeding 12 months from the date of certification, the period that the certification covers; and (4) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all requirements for preferential tariff treatment specified for those goods in the United States-Panama Trade Promotion Agreement; and This document consists of ____ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Certification by the exporter or producer. (i) The exporter's or producer's knowledge that the good is originating; or (ii) In the case of an exporter, reasonable reliance on the producer's certification that the good is originating. (2) The Center director may not require an exporter or producer to provide a written or electronic certification to another person. (e) Applicability of certification. (1) A single shipment of a good into the United States; or (2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification. (f) Validity of certification. § 10.2005 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the PANTPA; (2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.2004; and (3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the submission of supporting documents, the importer will provide to CBP, or arrange for the direct submission by the exporter or producer of, all information relied on by the exporter or producer in preparing the certification. (b) Information provided by exporter or producer. (c) Exemption from penalties. see § 10.2006 Certification not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. § 10.2007 Maintenance of records. (a) General. (b) Method of maintenance. § 10.2008 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. Export Requirements § 10.2009 Certification for goods exported to Panama. (a) Submission of certification to CBP. (b) Notification of errors in certification. see (c) Maintenance of records General. (i) The purchase, cost, and value of, and payment for, the good; (ii) The purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and (iii) The production of the good in the form in which the good was exported. (2) Method of maintenance. (3) Availability of records. Post-Importation Duty Refund Claims § 10.2010 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.2011. Subject to the provisions of § 10.2008, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.2012(c). § 10.2011 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written or electronic declaration or statement stating that the good was an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) A copy of a written or electronic certification prepared in accordance with § 10.2004 if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment; (3) A written statement indicating whether the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identification number, and address and must specify the date on which the documentation was provided; and (4) A written statement indicating whether any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. § 10.2012 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. Rules of Origin § 10.2013 Definitions. For purposes of §§ 10.2013 through 10.2025: (a) Adjusted value. (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (o) of this section; (b) Class of motor vehicles. (1) Motor vehicles classified under subheading 8701.20, motor vehicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS; (2) Motor vehicles classified under subheading 8701.10 or any of subheadings 8701.30 through 8701.90, HTSUS; (3) Motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, HTSUS, or motor vehicles classified under subheading 8704.21 or 8704.31, HTSUS; or (4) Motor vehicles classified under subheadings 8703.21 through 8703.90, HTSUS; (c) Enterprise. (1) Production, processing, or manipulation of textile or apparel goods in the territory of Panama, including in any free trade zone, foreign trade zone, or export processing zone; (2) Importation of textile or apparel goods into the territory of Panama, including into any free trade zone, foreign trade zone, or export processing zone; or (3) Exportation of textile or apparel goods from the territory of Panama, including from any free trade zone, foreign trade zone, or export processing zone; (d) Exporter. (e) Fungible good or material. (f) Generally Accepted Accounting Principles. (g) Good. (h) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. (1) Plants and plant products harvested or gathered in the territory of one or both of the Parties; (2) Live animals born and raised in the territory of one or both of the Parties; (3) Goods obtained in the territory of one or both of the Parties from live animals; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties; (5) Minerals and other natural resources not included in paragraphs (h)(1) through (h)(4) of this section that are extracted or taken in the territory of one or both of the Parties; (6) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of the Parties by: (i) Vessels registered or recorded with Panama and flying its flag; or (ii) Vessels documented under the laws of the United States; (7) Goods produced on board factory ships from the goods referred to in paragraph (h)(6) of this section, if such factory ships are: (i) Registered or recorded with Panama and flying its flag; or (ii) Documented under the laws of the United States; (8) Goods taken by a Party or a person of a Party from the seabed or subsoil outside territorial waters, if a Party has rights to exploit such seabed or subsoil; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Manufacturing or processing operations in the territory of one or both of the Parties; or (ii) Used goods collected in the territory of one or both of the Parties, if such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of one or both of the Parties from used goods, and used in the territory of one or both of the Parties in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in any of paragraphs (h)(1) through (h)(10) of this section, or from the derivatives of such goods, at any stage of production; (i) Indirect material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment or buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production; (j) Material. (k) Model line. (l) Net cost. (m) Non-allowable interest costs. (n) Non-originating good or non-originating material. (o) Packing materials and containers for shipment. (p) Producer. (q) Production. (r) Reasonably allocate. (s) Recovered goods. (1) The disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition; (t) Remanufactured good. (1) Is entirely or partially comprised of recovered goods as defined in paragraph (s) of this section; and (2) Has a similar life expectancy and enjoys a factory warranty similar to such a good that is new; (u) Royalties. (1) Personnel training, without regard to where performed; and (2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services; (v) Sales promotion, marketing, and after-sales service costs. (1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing, and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; (2) Sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; (3) Salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing, and after-sales service personnel; (4) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (5) Product liability insurance; (6) Office supplies for sales promotion, marketing, and after-sales service of goods, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (7) Telephone, mail and other communications, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (8) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers; (9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; and (10) Payments by the producer to other persons for warranty repairs; (w) Self-produced material. (x) Shipping and packing costs. (y) Total cost. (z) Used. (aa) Value. § 10.2014 Originating goods. Except as otherwise provided in this subpart and General Note 35, HTSUS, a good imported into the customs territory of the United States will be considered an originating good under the PANTPA only if: (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties; (b) The good is produced entirely in the territory of one or both of the Parties and: (1) Each non-originating material used in the production of the good undergoes an applicable change in tariff classification specified in General Note 35, HTSUS, and the good satisfies all other applicable requirements of General Note 35, HTSUS; or (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 35, HTSUS, and satisfies all other applicable requirements of General Note 35, HTSUS; or (c) The good is produced entirely in the territory of one or both of the Parties exclusively from originating materials. § 10.2015 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. (d) Special rule for certain automotive goods General. (2) Net cost method. (i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allocating the resulting net cost of those goods to the automotive good; (ii) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or (iii) Reasonably allocating each cost that forms part of the total costs incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or non-allowable interest costs. (3) Motor vehicles General. (ii) Categories. (A) The same model line of motor vehicles, in the same class of vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; (B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; and (C) The same model line of motor vehicles produced in the territory of a Party as the motor vehicle for which the regional value content is being calculated. (4) Other automotive goods General. (A) Average the amounts calculated under the formula set forth in paragraph (d)(2) of this section over any of the following: the fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quarter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation; (B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or (C) Make a separate determination under paragraph (d)(4)(i)(A) or (d)(4)(i)(B) of this section for automotive goods that are exported to the territory of Panama or the United States. (ii) Duration of use. § 10.2016 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, i.e., in the same manner as for imported goods, with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation); or (3) In the case of a self-produced material, the sum of: (i) All expenses incurred in the production of the material, including general expenses; and (ii) An amount for profit equivalent to the profit added in the normal course of trade. (b) Examples. Example 1. A producer in Panama purchases material x from an unrelated seller in Panama for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Panama ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Panama by the seller (or by anyone else). So long as the producer acquired material x in Panama, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within Panama at or about the same time the goods were sold to the producer in Panama. Thus, if the seller of material x also sold an identical material to another buyer in Panama without restrictions, that other sale would be used to determine the adjusted value of material x. (c) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (2) Deductions from non-originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of one or both of the Parties. (d) Accounting method. § 10.2017 Accumulation. (a) Originating materials from the territory of a Party that are used in the production of a good in the territory of another Party will be considered to originate in the territory of that other Party. (b) A good that is produced in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.2014 and all other applicable requirements of General Note 35, HTSUS. § 10.2018 De minimis. (a) General. (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content requirement for the good under General Note 35, HTSUS; and (3) The good meets all other applicable requirements of General Note 35, HTSUS. (b) Exceptions. (1) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (2) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, which is used in the production of the following goods: (i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS; (ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS; (iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS; (iv) Goods provided for in heading 2105, HTSUS; (v) Beverages containing milk provided for in subheading 2202.90, HTSUS; or (vi) Animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90, HTSUS; (3) A non-originating material provided for in heading 0805, HTSUS, or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in any of subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheading 2106.90 or 2202.90, HTSUS; (4) A non-originating material provided for in heading 0901 or 2101, HTSUS, that is used in the production of a good provided for in heading 0901 or 2101, HTSUS; (5) A non-originating material provided for in heading 1006, HTSUS, that is used in the production of a good provided for in heading 1102 or 1103 or subheading 1904.90, HTSUS; (6) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good provided for in Chapter 15, HTSUS; (7) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in any of headings 1701 through 1703, HTSUS; (8) A non-originating material provided for in Chapter 17, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; or (9) Except as provided in paragraphs (b)(1) through (b)(8) of this section and General Note 35, HTSUS, a non-originating material used in the production of a good provided for in any of Chapters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this subpart. (c) Textile and apparel goods General. (i) The total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or (ii) The yarns are nylon filament yarns (other than elastomeric yarns) that are provided for in subheading 5402.11.30, 5402.11.60, 5402.19.30, 5402.19.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00 or 5402.61.00, HTSUS, and that are products of Canada, Mexico, or Israel. (2) Exception for goods containing elastomeric yarns. (3) Yarn, fabric, or fiber. § 10.2019 Fungible goods and materials. (a) General. (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) Duration of use. § 10.2020 Accessories, spare parts, or tools. (a) General. (1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good, regardless of whether they are specified or separately identified in the invoice for the good; and (2) The quantities and value of the accessories, spare parts, or tools are customary for the good. (b) Regional value content. § 10.2021 Goods classifiable as goods put up in sets. Notwithstanding the specific rules set forth in General Note 35, HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless: (a) Each of the goods in the set is an originating good; or (b) The total value of the non-originating goods in the set does not exceed; (1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or (2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set. § 10.2022 Retail packaging materials and containers. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example 1. Panamanian Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.2016(a)(1), the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV − VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, except that the blister packages are originating. In this case, the adjusted value of the originating blister packages would not see § 10.2023 Packing materials and containers for shipment. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example. see § 10.2024 Indirect materials. An indirect material, as defined in § 10.2013(i), will be considered to be an originating material without regard to where it is produced. Example. § 10.2025 Transit and transshipment. (a) General. (1) Undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or (2) Does not remain under the control of customs authorities in the territory of a non-Party. (b) Documentary evidence. Origin Verifications and Determinations § 10.2026 Verification and justification of claim for preferential tariff treatment. (a) Verification. (1) Written requests for information from the importer, exporter, or producer; (2) Written questionnaires to the importer, exporter, or producer; (3) Visits to the premises of the exporter or producer in the territory of Panama, to review the records of the type referred to in § 10.2009(c)(1) or to observe the facilities used in the production of the good, in accordance with the framework that the Parties develop for conducting verifications; and (4) Such other procedures to which the Parties may agree. (b) Applicable accounting principles. § 10.2027 Special rule for verifications in Panama of U.S. imports of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made, if CBP determines there is insufficient information to support the claim; (ii) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that an enterprise has provided incorrect information to support the claim; (iii) Detention of any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect information, to support the claim; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided incorrect information as to, the country of origin of any such good. (b) Procedures to determine compliance with applicable customs laws and regulations of the United States General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to support a claim for preferential tariff treatment with respect to any such good; (ii) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information to support a claim for preferential tariff treatment with respect to any such good; (iii) Detention of any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient or incorrect information, or that the enterprise has provided incorrect information, to support a claim for preferential tariff treatment with respect to any such good; and (ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided incorrect information as to, the country of origin of any such good. (c) Action by U.S. officials in conducting a verification abroad. (d) Denial of permission to conduct a verification. (e) Continuation of appropriate action. § 10.2028 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment under this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 35, HTSUS, and in §§ 10.2013 through 10.2025, the legal basis for the determination. § 10.2029 Repeated false or unsupported preference claims. Where verification or other information reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the PANTPA rules of origin set forth in General Note 35, HTSUS, CBP may suspend preferential tariff treatment under the PANTPA to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 35, HTSUS. Penalties § 10.2030 General. Except as otherwise provided in this subpart, all criminal, civil, or administrative penalties which may be imposed on U.S. importers, exporters, and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the laws and regulations relating to the PANTPA. § 10.2031 Corrected claim or certification by importers. An importer who makes a corrected claim under § 10.2003(c) will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certification, provided that the corrected claim is promptly and voluntarily made. § 10.2032 Corrected certification by U.S. exporters or producers. Civil or administrative penalties provided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notification pursuant to § 10.2009(b) with respect to the making of an incorrect certification. § 10.2033 Framework for correcting claims or certifications. (a) “ Promptly and voluntarily” defined. (1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or (iii) Done within 30 days after the importer, exporter, or producer initially becomes aware that the claim or certification is incorrect; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) In the case of a corrected claim or certification by an importer, accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (d) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim or certification relates; (2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, including each port of importation and the approximate date of each importation; (3) Specifies the nature of the incorrect statements or omissions regarding the claim or certification; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Tender of actual loss of duties. Goods Returned After Repair or Alteration § 10.2034 Goods re-entered after repair or alteration in Panama. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. Subpart T—United States-Colombia Trade Promotion Agreement Source: 77 FR 59069, Sept. 26, 2012, unless otherwise noted. General Provisions § 10.3001 Scope. This subpart implements the duty preference and related customs provisions applicable to imported and exported goods under the United States-Colombia Trade Promotion Agreement (the CTPA) signed on November 22, 2006, and under the United States-Colombia Trade Promotion Agreement Implementation Act (the “Act”), Public Law 112-42, 125 Stat. 462 (19 U.S.C. 3805 note). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the CTPA and the Act are contained in Parts 24, 162, and 163 of this chapter. § 10.3002 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart: (a) Claim for preferential tariff treatment. (b) Claim of origin. (c) Customs authority. (d) Customs duty. (1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (2) Antidumping or countervailing duty that is applied pursuant to a Party's domestic law; or (3) Fee or other charge in connection with importation commensurate with the cost of services rendered; (e) Customs Valuation Agreement. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (f) Days. (g) Enterprise. (h) Enterprise of a Party. (i) Goods of a Party. (j) GATT 1994. General Agreement on Tariffs and Trade 1994, WTO Agreement; (k) Harmonized System. Harmonized Commodity Description and Coding System, (l) Heading. (m) HTSUS. Harmonized Tariff Schedule of the United States (n) Identical goods. (o) Originating. (p) Party. (q) Person. (r) Preferential tariff treatment. (s) Subheading. (t) Textile or apparel good. (u) Territory. (1) With respect to Colombia, in addition to its continental territory, the archipelago of San Andrés, Providencia and Santa Catalina, the islands of Malpelo, and all the other islands, islets, keys, headlands and shoals that belong to it, as well as air space and the maritime areas over which Colombia has sovereignty or sovereign rights or jurisdiction in accordance with its domestic law and international law, including applicable international treaties; and (2) With respect to the United States: (i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (ii) The foreign trade zones located in the United States and Puerto Rico; and (iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; (v) WTO. (w) WTO Agreement. Marrakesh Agreement Establishing the World Trade Organization Import Requirements § 10.3003 Filing of claim for preferential tariff treatment upon importation. (a) Basis of claim. (1) A written or electronic certification, as specified in § 10.3004, that is prepared by the importer, exporter, or producer of the good; or (2) The importer's knowledge that the good is an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good. (b) Making a claim. (c) Corrected claim. see § 10.3004 Certification. (a) General. (1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose; (2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim; (3) Must include the following information: (i) The legal name, address, telephone number, and email address of the certifying person; (ii) If not the certifying person, the legal name, address, telephone number, and email address of the importer of record, the exporter, and the producer of the good, if known; (iii) The legal name, address, telephone number, and email address of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by paragraph (a)(3)(i) of this section); (iv) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently detailed to relate it to the invoice and the HS nomenclature; (v) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classification rule for the good set forth in General Note 34, HTSUS; and (vi) The applicable rule of origin set forth in General Note 34, HTSUS, under which the good qualifies as an originating good; (vii) Date of certification; (viii) In case of a blanket certification issued with respect to multiple shipments of identical goods within any period specified in the written or electronic certification, not exceeding 12 months from the date of certification, the period that the certification covers; and (4) Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all requirements for preferential tariff treatment specified for those goods in the United States-Colombia Trade Promotion Agreement; and This document consists of ______ pages, including all attachments.” (b) Responsible official or agent. (c) Language. (d) Certification by the exporter or producer. (i) The exporter's or producer's knowledge that the good is originating; or (ii) In the case of an exporter, reasonable reliance on the producer's certification that the good is originating. (2) The Center director may not require an exporter or producer to provide a written or electronic certification to another person. (e) Applicability of certification. (1) A single shipment of a good into the United States; or (2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification. (f) Validity of certification. § 10.3005 Importer obligations. (a) General. (1) Will be deemed to have certified that the good is eligible for preferential tariff treatment under the CTPA; (2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.3004; and (3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the submission of supporting documents, the importer will provide to CBP, or arrange for the direct submission by the exporter or producer of, all information relied on by the exporter or producer in preparing the certification. (b) Information provided by exporter or producer. (c) Exemption from penalties. see § 10.3006 Certification not required. (a) General. (1) A non-commercial importation of a good; or (2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500. (b) Exception. [77 FR 59069, Sept. 26, 2012, as amended by CBP Dec. 16-26, 81 FR 93014, Dec. 20, 2016] § 10.3007 Maintenance of records. (a) General. (b) Method of maintenance. [77 FR 59069, Sept. 26, 2012, as amended at 78 FR 60193, Oct. 1, 2013] § 10.3008 Effect of noncompliance; failure to provide documentation regarding transshipment. (a) General. (b) Failure to provide documentation regarding transshipment. Export Requirements § 10.3009 Certification for goods exported to Colombia. (a) Submission of certification to CBP. (b) Notification of errors in certification. see (c) Maintenance of records General. (i) The purchase, cost, and value of, and payment for, the good; (ii) The purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and (iii) The production of the good in the form in which the good was exported. (2) Method of maintenance. (3) Availability of records. Post-Importation Duty Refund Claims § 10.3010 Right to make post-importation claim and refund duties. Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.3011. Subject to the provisions of § 10.3008, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.3012(c). § 10.3011 Filing procedures. (a) Place of filing. (b) Contents of claim. (1) A written or electronic declaration or statement stating that the good was an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good; (2) A copy of a written or electronic certification prepared in accordance with § 10.3004 if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment; (3) A written statement indicating whether the importer of the good provided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identification number, and address and must specify the date on which the documentation was provided; and (4) A written statement indicating whether any person has filed a protest relating to the good under any provision of law; and if any such protest has been filed, the statement must identify the protest by number and date. [77 FR 59069, Sept. 26, 2012, as amended at 78 FR 60193, Oct. 1, 2013] § 10.3012 CBP processing procedures. (a) Status determination. (b) Pending protest or judicial review. (c) Allowance of claim Unliquidated entry. (2) Liquidated entry. (d) Denial of claim General. (2) Unliquidated entry. (3) Liquidated entry. Rules of Origin § 10.3013 Definitions. For purposes of §§ 10.3013 through 10.3025: (a) Adjusted value. (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and (2) The value of packing materials and containers for shipment as defined in paragraph (n) of this section; (b) Class of motor vehicles. (1) Motor vehicles classified under subheading 8701.20, motor vehicles for the transport of 16 or more persons classified under 8702.10 or 8702.90, HTSUS, and motor vehicles classified under subheading under 8702.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706; (2) Motor vehicles classified under subheading 8701.10 or subheadings 8701.30 through 8701.90, HTSUS; (3) Motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, HTSUS, and motor vehicles of subheading 8704.21 or 8704.31, HTSUS; or (4) Motor vehicles classified under subheadings 8703.21 through 8703.90, HTSUS; (c) Exporter. (d) Fungible good or material. (e) Generally Accepted Accounting Principles. (f) Good. (g) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. (1) Plants and plant products harvested or gathered in the territory of one or both of the Parties; (2) Live animals born and raised in the territory of one or both of the Parties; (3) Goods obtained in the territory of one or both of the Parties from live animals; (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties; (5) Minerals and other natural resources not included in paragraphs (g)(1) through (g)(4) of this section that are extracted or taken in the territory of one or both of the Parties; (6) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of the Parties by: (i) Vessels registered or recorded with Colombia and flying its flag; or (ii) Vessels documented under the laws of the United States; (7) Goods produced on board factory ships from the goods referred to in paragraph (g)(6) of this section, if such factory ships are: (i) Registered or recorded with Colombia and fly its flag; or (ii) Documented under the laws of the United States; (8) Goods taken by a Party or a person of a Party from the seabed or subsoil outside territorial waters, if a Party has rights to exploit such seabed or subsoil; (9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party; (10) Waste and scrap derived from: (i) Manufacturing or processing operations in the territory of one or both of the Parties; or (ii) Used goods collected in the territory of one or both of the Parties, if such goods are fit only for the recovery of raw materials; (11) Recovered goods derived in the territory of one or both of the Parties from used goods, and used in the territory of one or both of the Parties in the production of remanufactured goods; and (12) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in any of paragraphs (g)(1) through (g)(10) of this section, or from the derivatives of such goods, at any stage of production; (h) Indirect Material. (1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in the maintenance of equipment or buildings; (4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings; (5) Gloves, glasses, footwear, clothing, safety equipment, and supplies; (6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and (8) Any other good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production. (i) Material. (j) Model line. (k) Net cost. (l) Non-allowable interest costs. (m) Non-originating good or non-originating material. (n) Packing materials and containers for shipment. (o) Producer. (p) Production. (q) Reasonably allocate. (r) Recovered goods. (1) The disassembly of used goods into individual parts; and (2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition; (s) Remanufactured good. (1) Is entirely or partially comprised of recovered goods as defined in paragraph (r) of this section; and (2) Has a similar life expectancy and enjoys a factory warranty similar to such new goods; (t) Royalties. (1) Personnel training, without regard to where performed; and (2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services; (u) Sales promotion, marketing, and after-sales service costs. (1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing, and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; (2) Sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; (3) Salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing, and after-sales service personnel; (4) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (5) Product liability insurance; (6) Office supplies for sales promotion, marketing, and after-sales service of goods, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (7) Telephone, mail and other communications, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (8) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers; (9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; and (10) Payments by the producer to other persons for warranty repairs; (v) Self-produced material. (w) Shipping and packing costs. (x) Total cost. (y) Used. (z) Value. [77 FR 59069, Sept. 26, 2012, as amended at 78 FR 60193, Oct. 1, 2013] § 10.3014 Originating goods. Except as otherwise provided in this subpart and General Note 34, HTSUS, a good imported into the customs territory of the United States will be considered an originating good under the CTPA only if: (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties; (b) The good is produced entirely in the territory of one or both of the Parties and: (1) Each non-originating material used in the production of the good undergoes an applicable change in tariff classification specified in General Note 34, HTSUS, and the good satisfies all other applicable requirements of General Note 34, HTSUS; or (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 34, HTSUS, and satisfies all other applicable requirements of General Note 34, HTSUS; or (c) The good is produced entirely in the territory of one or both of the Parties exclusively from originating materials. § 10.3015 Regional value content. (a) General. (b) Build-down method. (c) Build-up method. (d) Special rule for certain automotive goods General. (2) Net cost method. (i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allocating the resulting net cost of those goods to the automotive good; (ii) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or (iii) Reasonably allocating each cost that forms part of the total costs incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or non-allowable interest costs. (3) Motor vehicles General. (ii) Categories. (A) The same model line of motor vehicles, in the same class of vehicles, produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; (B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehicle for which the regional value content is being calculated; and (C) The same model line of motor vehicles produced in the territory of a Party as the motor vehicle for which the regional value content is being calculated. (4) Other automotive goods General. (A) Average the amounts calculated under the formula set forth in paragraph (d)(2) of this section over any of the following: the fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quarter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation; (B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or (C) Make a separate determination under paragraph (d)(4)(i)(A) or (d)(4)(i)(B) of this section for automotive goods that are exported to the territory of Colombia or the United States. (ii) Duration of use. § 10.3016 Value of materials. (a) Calculating the value of materials. de minimis see (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired by the producer in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, of the material, i.e., in the same manner as for imported goods, with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation); or (3) In the case of a self-produced material, the sum of: (i) All expenses incurred in the production of the material, including general expenses; and (ii) An amount for profit equivalent to the profit added in the normal course of trade. (b) Examples. Example 1. A producer in Colombia purchases material x from an unrelated seller in Colombia for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Colombia ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Colombia by the seller (or by anyone else). So long as the producer acquired material x in Colombia, it is intended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8. Example 2. Same facts as in Example 1, except that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within Colombia at or about the same time the goods were sold to the producer in Colombia. Thus, if the seller of material x also sold an identical material to another buyer in Colombia without restrictions, that other sale would be used to determine the adjusted value of material x. (c) Permissible additions to, and deductions from, the value of materials Additions to originating materials. (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (2) Deductions from non-originating materials. (i) The costs of freight (“cost of freight” includes the costs of all types of freight, including in-land freight incurred within a Party's territory, regardless of the mode of transportation), insurance, packing, and all other costs incurred in transporting the material within or between the territory of one or both of the Parties to the location of the producer; (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of one or both of the Parties. (d) Accounting method. [77 FR 59069, Sept. 26, 2012, as amended at 78 FR 60193, Oct. 1, 2013] § 10.3017 Accumulation. (a) Originating materials from the territory of a Party that are used in the production of a good in the territory of another Party will be considered to originate in the territory of that other Party. (b) A good that is produced in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.3014 and all other applicable requirements of General Note 34, HTSUS. § 10.3018 De minimis. (a) General. (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content requirement for the good under General Note 34, HTSUS; and (3) The good meets all other applicable requirements of General Note 34, HTSUS. (b) Exceptions. (1) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS; (2) A non-originating material provided for in Chapter 4, HTSUS, or a non-originating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, which is used in the production of the following goods: (i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS; (ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS; (iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS; (iv) Goods provided for in heading 2105, HTSUS; (v) Beverages containing milk provided for in subheading 2202.90, HTSUS; or (vi) Animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90, HTSUS; (3) A non-originating material provided for in heading 0805, HTSUS, or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in any of subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheading 2106.90 or 2202.90, HTSUS; (4) A non-originating material provided for in heading 0901 or 2101, HTSUS, that is used in the production of a good provided for in heading 0901 or 2101, HTSUS; (5) A non-originating material provided for in headings 1501 through 1508, HTSUS, or headings 1511 through 1515, HTSUS; (6) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in any of headings 1701 through 1703, HTSUS; (7) A non-originating material provided for in Chapter 17, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS; or (8) Except as provided in paragraphs (b)(1) through (b)(7) of this section and General Note 34, HTSUS, a non-originating material used in the production of a good provided for in any of Chapters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this subpart. (c) Textile and apparel goods General. (i) The total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or (ii) The yarns are nylon filament yarns (other than elastomeric yarns) that are provided for in subheading 5402.11.30, 5402.11.60, 5402.19.30, 5402.19.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00, or 5402.61.00, HTSUS, and that are products of Canada, Mexico, or Israel. (2) Exception for goods containing elastomeric yarns. (3) Yarn, fabric, or fiber. § 10.3019 Fungible goods and materials. (a) General. (1) Averaging; (2) “Last-in, first-out;” (3) “First-in, first-out;” or (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country. (b) Duration of use. § 10.3020 Accessories, spare parts, or tools. (a) General. (1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good, regardless of whether they are specified or separately identified in the invoice for the good; and (2) The quantities and value of the accessories, spare parts, or tools are customary for the good. (b) Regional value content. § 10.3021 Goods classifiable as goods put up in sets. Notwithstanding the specific rules set forth in General Note 34, HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless: (a) Each of the goods in the set is an originating good; or (b) The total value of the non-originating goods in the set does not exceed; (1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or (2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set. § 10.3022 Retail packaging materials and containers. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example 1. Colombian Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.3016(a)(1), the value of the blister packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV − VNM)/AV) × 100 ( see Example 2. Same facts as in Example 1, except that the blister packages are originating. In this case, the adjusted value of the originating blister packages would not see § 10.3023 Packing materials and containers for shipment. (a) Effect on tariff shift rule. (b) Effect on regional value content calculation. Example. Colombian producer A produces good C. Producer A ships good C to the United States in a shipping container that it purchased from Company B in Colombia. The shipping container is originating. The value of the shipping container determined under section § 10.3016(a)(2) is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping container. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 ( see § 10.3024 Indirect materials. An indirect material, as defined in § 10.3013(h), will be considered to be an originating material without regard to where it is produced. Example. Colombian Producer A produces good C using non-originating material B. Producer A imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.3014(b)(1) and General Note 34, each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material B must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced. § 10.3025 Transit and transshipment. (a) General. (1) Undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or (2) Does not remain under the control of customs authorities in the territory of a non-Party. (b) Documentary evidence. Origin Verifications and Determinations § 10.3026 Verification and justification of claim for preferential tariff treatment. (a) Verification. (1) Written requests for information from the importer, exporter, or producer; (2) Written questionnaires to the importer, exporter, or producer; (3) Visits to the premises of the exporter or producer in the territory of Colombia, to review the records of the type referred to in § 10.3009(c)(1) or to observe the facilities used in the production of the good, in accordance with the framework that the Parties develop for conducting verifications; and (4) Such other procedures to which the Parties may agree. (b) Applicable accounting principles. § 10.3027 Special rule for verifications in Colombia of U.S. imports of textile and apparel goods. (a) Procedures to determine whether a claim of origin is accurate General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made, if CBP determines there is insufficient information to support the claim; (ii) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that a person has provided incorrect information to support the claim; (iii) Detention of any textile or apparel good exported or produced by the person subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the person subject to the verification if CBP determines that the person has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines there is insufficient information, or that the person has provided incorrect information, to support the claim; and (ii) Denying entry to any textile or apparel good exported or produced by the person subject to the verification if CBP determines there is insufficient information to determine, or that the person has provided incorrect information as to, the country of origin of any such good. (b) Procedures to determine compliance with applicable customs laws and regulations of the United States General. (2) Actions during a verification. (i) Suspending the application of preferential tariff treatment to any textile or apparel good exported or produced by the person subject to the verification if CBP determines there is insufficient information to support a claim for preferential tariff treatment with respect to any such good; (ii) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the person subject to the verification if CBP determines that the person has provided incorrect information to support a claim for preferential tariff treatment with respect to any such good; (iii) Detention of any textile or apparel good exported or produced by the person subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and (iv) Denying entry to any textile or apparel good exported or produced by the person subject to the verification if CBP determines that the person has provided incorrect information as to the country of origin of any such good. (3) Actions following a verification. (i) Denying the application of preferential tariff treatment to any textile or apparel good exported or produced by the person subject to the verification if CBP determines there is insufficient information, or that the person has provided incorrect information, to support a claim for preferential tariff treatment with respect to any such good; and (ii) Denying entry to any textile or apparel good exported or produced by the person subject to the verification if CBP determines there is insufficient information to determine, or that the person has provided incorrect information as to, the country of origin of any such good. (c) Action by U.S. officials in conducting a verification abroad. (d) Denial of permission to conduct a verification. (e) Continuation of appropriate action. [77 FR 59069, Sept. 26, 2012, as amended at 78 FR 60193, Oct. 1, 2013] § 10.3028 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment under this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following: (a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good; (b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and (c) With specific reference to the rules applicable to originating goods as set forth in General Note 34, HTSUS, and in §§ 10.3013 through 10.3025, the legal basis for the determination. § 10.3029 Repeated false or unsupported preference claims. Where verification or other information reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the CTPA rules of origin set forth in General Note 34, HTSUS, CBP may suspend preferential tariff treatment under the CTPA to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 34, HTSUS. Penalties § 10.3030 General. Except as otherwise provided in this subpart, all criminal, civil, or administrative penalties which may be imposed on U.S. importers, exporters, and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the laws and regulations relating to the CTPA. § 10.3031 Corrected claim or certification by importers. An importer who makes a corrected claim under § 10.3003(c) will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certification, provided that the corrected claim is promptly and voluntarily made. § 10.3032 Corrected certification by U.S. exporters or producers. Civil or administrative penalties provided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notification pursuant to § 10.3009(b) with respect to the making of an incorrect certification. § 10.3033 Framework for correcting claims or certifications. (a) “ Promptly and voluntarily” defined. (1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or (ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or (iii) Done within 30 days after the importer, exporter, or producer initially becomes aware that the claim or certification is incorrect; and (2) Accompanied by a statement setting forth the information specified in paragraph (c) of this section; and (3) In the case of a corrected claim or certification by an importer, accompanied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accordance with paragraph (d) of this section. (b) Exception in cases involving fraud or subsequent incorrect claims Fraud. (2) Subsequent incorrect claims. (c) Statement. (1) Identifies the class or kind of good to which the incorrect claim or certification relates; (2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, including each port of importation and the approximate date of each importation; (3) Specifies the nature of the incorrect statements or omissions regarding the claim or certification; and (4) Sets forth, to the best of the person's knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data. (d) Tender of actual loss of duties. Goods Returned After Repair or Alteration § 10.3034 Goods re-entered after repair or alteration in Colombia. (a) General. (b) Goods not eligible for duty-free treatment after repair or alteration. (c) Documentation. [77 FR 59069, Sept. 26, 2012, as amended at 78 FR 60193, Oct. 1, 2013]

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