[Federal Register Volume 61, Number 110 (Thursday, June 6, 1996)]
[Rules and Regulations]
[Pages 28932-28980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14027]
[[Page 28931]]
_______________________________________________________________________
Part II
Department of the Treasury
_______________________________________________________________________
Customs Service
_______________________________________________________________________
19 CFR Part 10, et al.
Rules for Determining the Country of Origin of a Good for Purposes of
Annex 311 of the North American Free Trade Agreement; Final Rule
Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules
and Regulations
[[Page 28932]]
DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Parts 10, 12, 102 and 134
[T.D. 96-48]
RIN 1515-AB34
Rules for Determining the Country of Origin of a Good for
Purposes of Annex 311 of the North American Free Trade Agreement
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document adopts as a final rule, with some modifications,
interim amendments to the Customs Regulations which established the
rules for determining when the country of origin of a good is one of
the parties to the North American Free Trade Agreement (NAFTA) as
required by Annex 311 of the NAFTA. These final NAFTA Marking Rules
apply only to all goods imported from Canada or Mexico other than
textile and apparel products, and do not apply to trade with other
countries.
EFFECTIVE DATE: August 5, 1996. These regulations shall apply to goods
entered, or withdrawn from warehouse, for consumption on or after
August 5, 1996.
FOR FURTHER INFORMATION CONTACT: Sandra L. Gethers, Office of
Regulations and Rulings (202-482-6980).
SUPPLEMENTARY INFORMATION:
Background
On January 3, 1994 Customs published two documents in the Federal
Register. One of these documents, T.D. 94-4 (59 FR 110), set forth as
interim regulations, effective January 1, 1994, rules for determining
the country of origin of goods for purposes of Annex 311 of the North
American Free Trade Agreement (NAFTA). The other document (59 FR 141)
proposed (1) to apply the same rules (set forth at 59 FR 110) to
determine the country of origin of merchandise in all cases under the
Customs and related laws and the navigation laws of the United States
and (2) to amend various provisons within parts 4, 10, 12, 134 and 177
of the Customs Regulations (19 CFR parts 4, 10, 12, 134 and 177) to
ensure that these rules would control wherever language requiring a
country of origin determination appears in those other regulatory
provisions; this notice of proposed rulemaking represented a refinement
and replacement of an earlier proposal published in the Federal
Register on September 25, 1991 (56 FR 48448). Both documents provided
for a 90-day public comment period, subsequently extended to July 5,
1994, by notices published in the Federal Register on March 10, 1994
(59 FR 11225) and March 11, 1994 (59 FR 11547). On February 3, 1994, a
notice was published in the Federal Register (59 FR 5082) setting forth
corrections to the interim regulations contained in T.D. 94-4.
The rules set forth in T.D. 94-4 were made effective January 1,
1994, for trade with Canada and Mexico in order to fulfill the United
States obligation under paragraph 1 of NAFTA Annex 311 which provides
that the parties to the NAFTA shall establish, by January 1, 1994,
rules (referred to as ``Marking Rules'') for determining whether a good
is a good of a party (that is, whether the country of origin of a good
is either the United States, Canada or Mexico) for purposes of the
following NAFTA Annexes: (1) Annex 311 (Country of Origin Marking); (2)
Annex 300-B (Textile and Apparel Goods); and (3) Annex 302.2 (Tariff
Elimination). T.D. 94-4 set forth these interim ``Marking Rules'' as a
new part 102 of the Customs Regulations (19 CFR Part 102), entitled
``Rules of Origin'', and also set forth consequential conforming
interim amendments to existing sections within parts 12 and 134 of the
Customs Regulations (19 CFR parts 12 and 134).
Interim part 102 consists of Secs. 102.0-102.20 and, following
Sec. 102.0 (Scope), is divided into two subparts. Subpart A is entitled
``General'' and consists of Sec. 102.1 (Definitions), and Subpart B is
entitled ``Rules of Origin'' and consists of Secs. 102.11 through
102.20. Section 102.11 sets forth the general rules for determining the
country of origin of a good and consists of paragraphs (a) through (d)
which are applied in a hierarchical and sequential manner. Thus,
reference must be had first to paragraph (a) which provides that the
country of origin of a good is: under subparagraph (1), the country in
which the good is wholly obtained or produced; under subparagraph (2),
the country in which the good is produced exclusively from domestic
materials; or, under subparagraph (3), the country in which each
foreign material incorporated in the good undergoes an applicable
change in tariff classification set out in Sec. 102.20 and/or satisfies
any other applicable requirements contained in that section or
elsewhere in part 102. If the country of origin cannot be determined
under paragraph (a) because the good does not meet the terms of
subparagraph (1), (2) or (3), then resort must be had to paragraph (b)
and, if that fails, then to paragraph (c) and, if that fails, finally
to paragraph (d). Sections 102.12-102.19 set forth additional rules
that serve to interpret, clarify, limit or otherwise control the
application of the general rules contained in Sec. 102.11 as well as
the specific rules contained in Sec. 102.20. Section 102.20 contains
the specific change in tariff classification rules and/or related
requirements referred to in the country of origin rule set forth in
Sec. 102.11(a)(3); the rules in Sec. 102.20 are set forth for each
Harmonized Tariff Schedule of the United States (HTSUS) chapter, and
the applicable rule is determined by the HTSUS tariff classification
that is applicable to the finished good at the time the country of
origin determination is being made.
In view of the fact that the January 3, 1994, notice of proposed
rulemaking presented the same regulatory scheme as the rules contained
in T.D. 94-4, each document referred to the other and stated that
public comments submitted in response to either document would be
considered in connection with the review of both documents. The notice
of proposed rulemaking further indicated that the background section
and interim Part 102 regulatory texts set forth in T.D. 94-4 were
applicable to it. Thus, it was intended that the two documents be read
together so that, following public notice and comment procedures, one
final rule document could be derived from the interim and proposed rule
documents, consistent with the overall goal of promulgating uniform
rules of origin for Customs and related purposes.
Based on a review of the comments received in response to the
interim and proposed rule documents published in the Federal Register
on January 3, 1994, and as a result of independent review of the
interim and proposed texts within Customs, it was determined that some
clarification and further explanation of the intent behind the proposed
uniform rule concept should be provided and that some changes should be
made to the interim and proposed texts and that those changes should be
the subject of public notice and comment procedures before proceeding
to the final rule stage in this matter; the interim texts as published
in T.D. 94-4 (and as subsequently corrected) would remain in effect
pending completion of such final rule action. In addition, Customs
determined that public comments should be solicited regarding the
appropriate use of a delayed effective date for any final rule
resulting from the interim and proposed rules and from any additional
proposed changes to those interim and proposed rules.
[[Page 28933]]
Accordingly, on May 5, 1995, Customs published in the Federal
Register (60 FR 22312) a document that (1) provided supplemental
background information regarding the proposed uniform rule concept, (2)
set forth proposals to amend the interim regulatory texts contained in
T.D. 94-4 published at 59 FR 110 and corrected at 59 FR 5082, (3)
republished (and thus replaced) all of the proposed regulatory
amendments published at 59 FR 141 on January 3, 1994, with certain
changes thereto, and (4) also invited public comments on the
appropriate effective date for a final rule on this matter. The May 5,
1995, document stated that it was the intention of Customs to address
in that document only those comments submitted in response to the
January 3, 1994, notices that involved substantive changes to the
interim or proposed texts requiring further public comment procedures;
other such previously submitted comments would be addressed in an
appropriate final rule or other document to be published at a later
date. Comments would be accepted and considered in response to that
document only in regard to (1) the proposed changes to the interim
regulatory texts as discussed and set forth therein, (2) all other
proposed regulatory amendments as discussed and set forth therein which
represented a substantive change to the proposals published on January
3, 1994, and (3) the final rule delayed effective date issue.
Therefore, comments which concerned other issues involved in the
January 3, 1994, documents, or which did not otherwise relate to the
new proposals set forth in the May 5, 1995, document, would not be
accepted and considered by Customs. The May 5, 1995, document also
stated that, for purposes of that document, the background sections of
the January 3, 1994, interim and proposed rule documents were
applicable except where otherwise required by a change set forth in
that document. The May 5, 1995, document provided for a 45-day public
comment period which was subsequently extended to July 19, 1995, by a
notice published in the Federal Register on June 5, 1995 (60 FR 29520).
After publication of the May 5, 1995, notice of proposed
rulemaking, additional issues came to the attention of Customs that
warranted publication of further proposed changes to the interim
regulatory texts published in T.D. 94-4, with opportunity for public
comment thereon. Accordingly, on July 12, 1995, Customs published in
the Federal Register (60 FR 35878) a notice of proposed rulemaking
setting forth additional proposed changes to the tariff shift and other
requirements of interim Sec. 102.20. Final action on the additional
proposals set forth in that document also would be reflected in the
single final rule document intended, as stated in the May 5, 1995,
document, to cover both the T.D. 94-4 interim regulations and the
subsequently published proposed regulatory amendments. Since that July
12, 1995, document set forth proposals that were in addition to the
proposed changes to the T.D. 94-4 interim regulations contained in the
May 5, 1995, proposed rule document, the background section of that May
5, 1995, document was stated to be applicable for purposes of the July
12, 1995, document except where otherwise required by a change set
forth in the latter document. Comments submitted in response to the
July 12, 1995, document would be accepted and considered only to the
extent that they address specific proposals set forth in that document;
comments submitted in regard to matters raised in the May 5, 1995,
proposed rule document that were not related to a specific proposal
contained in the July 12, 1995, document would remain subject to the
public comment period specified in the earlier document. The public
comment period specified in the July 12, 1995, document closed on
August 28, 1995, and a correction document involving the Background
discussion in that document was published in the Federal Register on
July 31, 1995 (60 FR 38982).
Deferral of Decision to Extend Section 102 to All Trade
Customs has decided that the proposal to extend Section 102 to all
trade, as reflected in the May 5, 1995, notice of proposed rulemaking,
should not be adopted as a final rule at this time but rather should
remain under consideration for implementation at a later date.
Accordingly, this final rule document concerns only the interim NAFTA
Marking Rules (as amended by T.D. 95-69 discussed above) and related
interim texts published on January 3, 1994, and those proposed
regulatory amendments published on May 5 and July 12, 1995, that relate
only to those interim texts, with certain changes thereto as discussed
elsewhere in this document. Thus, this document does not include those
May 5, 1995, proposed regulatory changes under the uniform rule concept
involving part 10 (Secs. 10.12, 10.14, 10.171, 10.176, 10.191 and
10.195), part 12 (Sec. 12.130), part 102 (Sec. 102.0), part 134
(Secs. 134.1 and 134.35) and part 177 (Sec. 177.22). Consequently,
those submitted public comments that addressed the proposed regulatory
changes that would apply a uniform method of determining origin to all
trade, including the delayed effective date issue, are not discussed in
this document but rather will be dealt with, as appropriate, in a
future Federal Register document once a final decision is taken on
whether to apply a uniform method of determining origin to all trade.
Rules of Origin for Textile and Apparel Products
On September 5, 1995, Customs published in the Federal Register (60
FR 46188) T.D. 95-69 which set forth final amendments to the Customs
Regulations to implement the provisions of section 334(b) of the
Uruguay Round Agreements Act (``the Act''), Public Law 103-465, 108
Stat. 4809, regarding the country of origin of textile and apparel
products. Those final regulations will apply to goods entered, or
withdrawn from warehouse, for consumption on or after July 1, 1996,
and, except for the purpose of identifying products of Israel and
except as otherwise provided for by statute, will govern the
determination of the country of origin of imported textile and apparel
products for purposes of all laws enforced by Customs. The regulatory
provisions in T.D. 95-69 that implement the basic origin principles of
section 334(b) of the Act are contained in a new Sec. 102.21 of the
Customs Regulations (19 CFR 102.21), and, in order to reflect the broad
applicability and precedence of the statutory origin principles as
implemented by those Sec. 102.21 rules, T.D. 95-69 also included
consequential cross-reference amendments to Secs. 12.130, 102.0 and
102.11 of the Customs Regulations (19 CFR 12.130, 102.0 and 102.11).
New Sec. 102.21 was modeled on the approach taken in the interim
Part 102 texts as published in T.D. 94-4 and thus incorporates a
general statement of applicability (paragraph (a)), various definitions
(paragraph (b)), general origin rules (paragraphs (c) and (d)), and
specific tariff shift and/or other requirements (paragraph (e)) that
apply under the second general rule. Of particular note for purposes of
the present document is the definition of ``textile or apparel
product'' in Sec. 102.21(b)(5) which delineates the class of goods
covered by the Sec. 102.21 rules. That definition identifies those
goods with reference to classification in the HTSUS and refers to
Chapters 50 through 63 (that is, all of Section XI) of the HTSUS as
well as to specific headings and 6-, 8- or 10-digit subheadings of the
HTSUS that fall outside Section XI. Thus, if a good is classifiable in
an HTSUS provision
[[Page 28934]]
listed in Sec. 102.21(b)(5), precedence must be given to the
Sec. 102.21 rules over any other regulatory origin provision with
regard to that good, including any origin rules contained elsewhere in
part 102. The consequential amendments to Secs. 12.130, 102.0 and
102.11 mentioned above were intended to reflect this precedence
principle.
In view of the precedence that must be given to the Sec. 102.21
origin rules which were adopted as a final rule after the completion of
separate public notice and comment procedures, it is clear that, for
purposes of the present document, all earlier public comments as
regards any goods now covered by Sec. 102.21 relating to textile and
apparel products (that is, those submitted in response to the interim
and proposed rule documents discussed above) have been rendered moot
and thus are no longer relevant. Accordingly, this document contains no
substantive discussion of any such comments insofar as they involve
Sec. 102.21 goods.
Since the Sec. 102.21 origin rules will also apply for the purposes
cited elsewhere in part 102 (that is, in Sec. 102.0), Customs believes
that all appearances of possible conflict between the two sets of rules
should be avoided. In keeping with the precedence to be given to the
Sec. 102.21 rules, the most appropriate means for accomplishing this is
(1) to remove, or otherwise exclude, from the table under Sec. 102.20
all those HTSUS references, together with their related tariff shift
and/or other requirements, that are included in the Sec. 102.21(b)(5)
definition of ``textile or apparel product'' and (2) in order to ensure
continuity of regulatory standards, to provide that the regulations set
forth in this final rule document will take effect on July 1, 1996,
when the Sec. 102.21 provisions become operative (see Sec. 102.21(a)).
Accordingly, the following changes have been made to the Sec. 102.20
table as set forth below to reflect these considerations:
1. The listing for subheading 3005.90 has been removed.
2. A new Chapter 39 Note has been added to provide that origin
shall be determined under the provisions of Sec. 102.21 in the case of
goods classified in subheadings 3921.12.15, 3921.13.15, and
3921.90.2550.
3. Since the new Chapter 42 Note as proposed in the May 5, 1995,
document would be superseded by the Sec. 102.21 provisions, this
proposed Note has been modified to simply provide that origin shall be
determined under the provisions of Sec. 102.21 in the case of goods
classified in subheadings 4202.12.40-80, 4202.22.40-80, 4202.32.40-95,
4202.92.15-30, and 4202.92.60-90.
4. The Section XI provisions have been removed.
5. The Chapter 64 Note has been modified by adding a sentence at
the end to provide that origin shall be determined under the provisions
of Sec. 102.21 in the case of goods classified in subheadings
6405.20.60, 6406.10.77, 6406.10.90, and 6406.99.15.
6. Since the new Chapter 65 Note as proposed in the May 5, 1995,
document would be superseded by the Sec. 102.21 provisions, this
proposed Note has been omitted.
7. The listing for headings 6501-6502 has been removed.
8. The listing for headings 6503-6506 has been replaced by the
following: (1) A listing for subheading 6505.10 (hair-nets), which
specifies a change to that subheading from any other subheading; and
(2) a listing for heading 6506, which follows the interim tariff shift
rules for headings 6503-6506 but with one consequential editorial
change in the first rule.
9. The listing for heading 6601 has been removed.
10. A new Chapter 70 Note has been added to provide that origin
shall be determined under the provisions of Sec. 102.21 in the case of
goods classified in subheadings 7019.19.15 and 7019.19.28 (subheadings
7019.10.15 and 7019.10.28 in the interim texts--see the 1996 HTSUS
conforming changes discussion below).
11. The listing for subheading 7019.20 has been removed.
12. The listing for subheadings 8708.10-8708-29 has been replaced
by separate listings for subheading 8708.10 and for subheading 8708.29,
with the tariff shift rule in each case following the interim rule.
13. The listing for headings 8804-8805 has been replaced by a
listing for heading 8805, with consequential editorial changes to the
interim tariff shift rule to reflect that only one heading is involved.
14. A new Chapter 91 Note has been added to provide that origin
shall be determined under the provisions of Sec. 102.21 in the case of
goods classified in subheading 9113.90.40.
15. The new Chapter 94 Note proposed in the May 5, 1995, document
has been modified by adding a sentence at the end to provide that
origin shall be determined under the provisions of Sec. 102.21 in the
case of goods classified in subheadings 9404.90.10 and 9404.90.80-95.
16. The listing for subheading 9502.91 has been removed.
17. A new Chapter 96 Note has been added to provide that origin
shall be determined under the provisions of Sec. 102.21 in the case of
goods classified in subheading 9612.10.9010.
In addition, for the above reasons and based on the considerations
reflected in the below comment discussion regarding Sec. 102.19(a),
references to ``Sec. 102.21'' have been added to the texts of
Secs. 102.13, 102.15 and 102.17 as set forth below.
Changes to Conform to 1996 HTSUS
A number of conforming changes have been made to the table under
Sec. 102.20 as set forth in this document, principally to the tariff
shift rules therein, to reflect changes included in the 1996 version of
the HTSUS as a result of amendments made to the international
Harmonized System. Those HTSUS changes involve primarily the product
coverage and/or numbering of some headings and subheadings, and the
conforming changes reflected in the Sec. 102.20 texts in this document
are not intended to have any other substantive effect. The specific
Sec. 102.20 conforming changes incorporated in this document are
reflected in the text of Note 1 to Section VI and in the following
heading and subheading listings: 0405.10, 0405.20, 0405.90, 0406,
0901.90, 1520, 1521-1522, 1903, 1904.10, 1904.20, 1904.90, 1905,
2106.90, 2207, 2208.20-2208.70, 2208.90, 2836.99, 2841.61-2841.69,
2848, 2849.10-2849.90, 2903.11-2903.30, 2903.41-2903.49, 2903.51-
2904.90, 2905.11-2905.19, 2905.45, 2914.31-2914.39, 2914.40-2914.70,
2932.11-2932.99, 3206.11-3206.19, 3206.20-3209.90, 3214.10-3214.90,
3302, 3304.10-3306.10, 3306.20, 3306.90-3307.90, 3402.11, 3402.12-
3402.20, 3502.11-3502.19, 3502.20-3502.90, 3823.11-3823.13, 3823.19,
3823.70, 3824.10, 3824.20, 3824.30, 3824.40, 3824.50, 3824.60, 3824.71-
3824.90, 4823.60-4823.70, 4823.90, 7019.11-7019.19, 7019.40-7019.59,
7116, 7507.11-7508.90, 7616.10-7616.99, 7907, 8005, 8406.10, 8406.81-
8406.82, 8456.10-8456.99, 8469.11-8469.12, 8469.20-8469.30, 8470.10-
8471.50, 8471.60-8472.90, 8475.10, 8475.21-8475.29, 8476.21-8476.89,
8506.10, 8506.30, 8506.40, 8506.50-8506.80, 8510.10-8510.30, 8517.11-
8517.80, 8519.10-8519.40, 8519.92-8519.93, 8519.99, 8520.10-8520.20,
8520.32, 8520.33, 8520.39-8520.90, 8521.10 8521.90, 8525.30-8525.40,
8527.12-8527.13, 8527.19-8527.90, 8528.12-8528.30, 8539.10-8539.31,
8539.32-8539.39, 8539.41-8539.49, 8540.11-8540.20, 8540.40-8540.60,
8540.71-8540.99, 8543.11-8543.19,
[[Page 28935]]
8543.20-8543.30, 8543.40-8543.89, 9007.11-9007.19, 9007.20, 9010.10,
9010.41-9010.50, 9010.60, 9018.11, 9018.12-9018.14, 9018.19, 9022.12-
9022.14, 9022.19-9022.90, 9030.10-9030.40, 9030.82-9030.83, 9030.89-
9030.90, 9031.10-9031.30, 9031.41-9031.49, 9031.80, and 9614.20. In
order to accurately reflect the public comments and the context in
which they were submitted, the comment discussion set forth below
refers to the interim Sec. 102.20 texts and published proposed changes
thereto and thus does not reflect these conforming changes.
Discussion of Comments
A total of 183 commenters responded to the solicitation of comments
in the interim and proposed rule documents referred to above. The
comments submitted, except those relating to textile and apparel
products and those relating to the uniform origin rule concept, and the
Customs responses thereto are set forth below.
Removal of Secs. 10.22, 102.14 and 134.43(e)--U.S. Goods Returned
Comments: Section 10.22, Customs Regulations (19 CFR 10.22),
provides that assembled articles eligible for subheading 9802.00.80,
HTSUS, treatment are considered products of the country of assembly for
purposes of country of origin marking. Section 102.14 of the interim
regulations provides that U.S. goods advanced in value or improved in
condition abroad are considered to be products of the country where the
U.S. goods were advanced in value or improved in condition, and
Sec. 134.43(e) of the interim regulations provides for special methods
of marking goods the origin of which is determined under Sec. 102.14 of
the interim regulations. Five comments opposed the removal of these
sections, and five comments favored their removal.
The commenters opposing the removal assert that since the foreign
assembly of U.S. components does not necessarily result in a
substantial transformation or tariff shift, resulting in a change in
origin of a good, Secs. 10.22 and 134.43(e) provide a means to identify
U.S. components in goods assembled abroad. Additionally, in situations
where assembled goods consist largely or entirely of U.S.-made
components and there is a change in origin, it is claimed that the use
of ``Assembled in'' will be eliminated, and ``Made in'' or ``Product
of'' is not only inaccurate, but does not serve the purpose ``to inform
the ultimate purchaser of the country of origin''. Furthermore, it is
stated that U.S. Note 2(a), Subchapter II, Chapter 98, HTSUS, still
provides that any product of the U.S. advanced in value or improved in
condition, or assembled abroad will be considered a foreign article
upon its return to the U.S.
The commenters who favor the removal of Secs. 10.22, 102.14 and
134.43(e) assert that U.S. products should not have to be marked upon
return to the U.S., unless they are substantially transformed.
Requiring U.S. goods to be marked restricts U.S. companies to the term
``Assembled in'' when all the components being assembled are of U.S.
origin, and it is suggested that this does not advise the ultimate
purchaser as to the real origin of the imported merchandise.
All of the comments, favorable and unfavorable, urged the continued
use of ``Assembled in'' when an eligible subheading 9802.00.80, HTSUS,
assembly operation constitutes a substantial transformation conferring
origin pursuant to Sec. 102.20 of the interim regulations. The
commenters also urged the general usage of the legend ``Assembled in''
as a valid country of origin marking when an assembled good is a
product of the country indicated.
One commenter also suggested that if Sec. 10.22 is removed without
further amending part 134 to authorize the use of ``Assembled in'' for
subheading 9802.00.80 merchandise, there will be ambiguity as to
whether ``Assembled in'' is a permissible country of origin marking
under the Customs Regulations, inasmuch as rulings approving the use of
``Assembled in'' are still in effect. Furthermore, if Sec. 10.22 is
removed, it was suggested that Part 134 be amended to confirm that in
all cases, information respecting assembly of an imported product may
be noted within an origin statement.
Customs Response: Customs' proposal to remove Sec. 10.22 was
originally discussed in the May 5, 1995, notice of proposed rulemaking
in the context of the uniform rules proposal. However, as demonstrated
by the above comments, the proposed removal of Sec. 10.22 is directly
related to the proposed removal of Secs. 102.14 and 134.43(e) of the
interim regulations. For this reason, Customs is responding
collectively to comments regarding the proposed removal of Secs. 10.22,
102.14 and 134.43(e).
Customs agrees that 19 U.S.C. 1304 does not preclude the use of
``Assembled in'' or require the use of ``Made in'' or ``Product of'' in
a country of origin statement. However, outside the context of articles
eligible for subheading 9802.00.80, HTSUS, treatment (i.e., when
Sec. 10.22 is applicable), Customs in the past has by rulings
determined that the phrase ``Assembled in'' is not an acceptable
country of origin statement. Reference was made by a commenter to
C.S.D. 79-244 as support that Customs approves of the marking
``Assembled in''. However, that determination involved calculators
assembled in Hong Kong with U.S. and/or foreign components.
Consequently, it appears that the calculators imported into the United
States were eligible for entry under item 807.00, Tariff Schedules of
the United States (TSUS) (now subheading 9802.00.80, HTSUS). It is
clear that there has been confusion as to the use of ``Assembled in''
when articles eligible for subheading 9802.00.80, HTSUS, treatment
contain foreign components as demonstrated by the series of
inconsistent rulings subsequent to the determination made in HQ 731507.
Consequently, instead of modifying all of the inconsistent rulings
concerning the use of ``Assembled in'', and since articles eligible for
subheading 9802.00.80, HTSUS, treatment may not undergo a substantial
transformation or tariff shift in the country of assembly, it is
Customs' opinion that Sec. 10.22 as well as Sec. 102.14 of the interim
regulations should be removed so that the country of origin of articles
assembled or advanced in value abroad is determined in the same manner
as any other good imported into the United States.
All of the comments mention the purpose of 19 U.S.C. 1304, which is
to inform the ultimate purchaser of the country of origin. Some of the
comments assert that Sec. 10.22 provides the ultimate purchaser with
information regarding the country of assembly and the origin of the
components used, while other comments suggest that the country of
assembly may not necessarily be the true country of origin. It is
Customs' opinion that an ultimate purchaser most likely will not be
aware that an article imported with the marking ``Assembled in'' is
eligible for subheading 9802.00.80, HTSUS, treatment. While U.S. Note
2(a), Subchapter II, Chapter 98, HTSUS, does provide that any product
of the United States advanced in value or improved in condition, or
assembled abroad, will be considered a foreign article upon its return
to the United States, Customs has reconsidered the position that this
Note applies for general country of origin purposes. Therefore, once
Sec. 10.22 and Sec. 102.14 of the interim regulations are removed, all
rulings based on those regulations may no longer be relied upon.
Accordingly, goods of U.S. origin which are assembled abroad or
[[Page 28936]]
otherwise advanced in value or improved in condition abroad, but which
do not undergo a change in origin as a result of these operations, will
not be required to have any country of origin marking pursuant to 19
U.S.C. 1304 when they are imported into the United States.
However, since all of the comments favor the use of ``Assembled
in'', Customs has reconsidered the proposal to remove all regulations
allowing the use of this phrase. Therefore, Sec. 134.43(e) will be
retained but in modified form, as set forth below, so as to be limited
to assembled goods when the origin of such goods is the country of
final assembly.
Section 102.1(g)--Definition of Wholly Obtained or Produced
Comment: A commenter suggests adoption of the Kyoto Convention
Rules of Origin definition of ``wholly obtained goods'' in order to
eliminate doubts as to when a good is considered to be wholly the
growth, product or manufacture of one country.
Customs response: The definition of ``wholly obtained or produced''
contained in Sec. 102.1(g), which is incorporated by reference in
Sec. 102.11(a)(1), is substantively identical to the definition set
forth in Annex D.1 to the Kyoto Convention, with the single exception
that the Part 102 definition also includes goods taken from outer
space, provided that they are obtained by that country or a person of
that country. Therefore, Customs agrees with this commenter that the
definition of wholly obtained or produced goods, which is patterned
after Kyoto Convention Annex D.1, provides more predictability in
determining when goods are wholly the growth product or manufacture of
a single country.
Section 102.1(m)--Definition of Minor Processing
Comment: One comment was received regarding this section. This
commenter expressed concern regarding subparagraph (5), which includes
``[u]nloading, reloading, or any other operation necessary to maintain
the good in good condition.'' The commenter stated that this language
appears overly broad and could be misinterpreted to apply to industrial
operations necessary to preserve a good, but which also alter the
essential character of the good. Therefore, this commenter suggests
that this provision be amended to read as follows: ``Unloading,
reloading, or any other insubstantial operation that does not add
significant value to the good and is performed solely to preserve or
maintain the good in good condition for shipment.''
Customs Response: Customs disagrees. The underlying premise of this
comment is that the definitions of Sec. 102.1, unlike most regulatory
``definitions'', can operate independently of other regulatory
provisions. This, however, is not the case here. The definition of
``minor processing'' only can operate in the context of other rules set
forth in part 102, particularly those provisions setting forth a
criterion for determining origin. The definition of ``minor
processing'' does not operate as a general disqualifer to the origin
criteria of other provisions, such as the way in which the ``non-
qualifying operations'' set forth in Sec. 102.17 are generally
applicable to all determinations under the specific tariff rules of
Sec. 102.20. When the definition of ``minor processing'' is applicable,
it normally is expressed as part of a ``negative'' origin criterion,
meaning that it is used to illustrate when a change of origin does not
occur. Therefore, if the other operations suggested by the commenter
also are performed, the good will not be deemed to have been produced
``only'' as a result of ``minor processing'', and thus a change of
origin could still be possible under the rules.
Section 102.1(p)--Definition of Substantial Transformation
Comment: One commenter submits that as a result of the proposed
elimination of the definition, the question of what constitutes a
``substantial transformation'' now can be determined only on the basis
of the specific Sec. 102.20 rule. The commenter also suggests that in
the absence of a general definition of ``substantial transformation'',
there will be a lack of certainty which is not only needed for Customs
origin determinations, but also for other purposes such as origin
determinations relating to ``industrial property rights''.
Customs Response: Customs disagrees. First, it is the position of
Customs that the principle of substantial transformation is reflected
and codified not only in the Sec. 102.20 rules but also in the entire
hierarchy of Sec. 102.11. In fact, Sec. 102.20 is only applicable
through its incorporation in Sec. 102.11(a)(3). The definition of
``substantial transformation'' was set forth in interim Sec. 102.1(p)
only because of the references made to that term in interim Sec. 102.16
and in certain specific interim rules contained in Sec. 102.20.
Customs, however, stated in the May 5, 1995, notice of proposed
rulemaking that Sec. 102.16 (in its entirety) and the references to
``substantial transformation'' contained in certain Sec. 102.20
specific rules were being proposed for removal because experience in
administering the interim regulations had demonstrated that the
application of the hierarchy contained in Sec. 102.11 will yield a
result that codifies the substantial transformation principle set forth
in interim Sec. 102.1(p). If origin is not determined under
Sec. 102.11(a)(3) [the section in which the Sec. 102.20 rules are
incorporated by reference], the question of whether or not there has
been a substantial transformation is not yet answered; the next step in
the hierarchy must be considered. As a result of the application of the
hierarchy, a specific determination of origin of a good can be made.
If, in the final analysis, the origin of the good under the hierarchy
is different from the origin of its materials, then there will have
been a substantial transformation of those materials.
Therefore, contrary to the underlying premise of this comment, it
is specifically because of the need for more certainty in origin
determinations that Customs is expressing the substantial
transformation principle through the step-by-step operation of the
Sec. 102.11 hierarchy. Customs' proposed removal of those provisions,
which merely incorporate the abstract definition of ``substantial
transformation'' without expressing when the criteria have been met, is
consistent with and promotes the overall objective of certainty.
Section 102.11(c)--General Rules
Comments: Two commenters state that Sec. 102.11(c), as applied to
mixtures and composite goods, is contrary to 19 U.S.C. 1304 and to
judicial precedents promulgated thereunder. These commenters expressed
concern that pursuant to Sec. 102.11(c), when no single material,
foreign or domestic, imparts the essential character, the mixture will
have the origins of the significant materials or ingredients used to
produce that mixture, as opposed to considering the mixture itself as a
new and different article of commerce.
These commenters also suggest that Customs include an ``escape
clause'' to appropriately deal with these and other unforeseeable
instances when processing in a country under existing precedent
constitutes a substantial transformation, but is not treated as such
under the new rules. In this regard, the commenter suggests that when
processing is deemed insufficient under Sec. 102.11(a)(3) or
Sec. 102.11(b) to confer origin in the country where the processing
takes place, this should
[[Page 28937]]
create a presumption that no substantial transformation occurs.
However, this presumption could be rebutted by factual evidence
establishing that the processing causes a change in name, character or
use.
Customs Response: Customs disagrees. Section 102.11 sets forth the
hierarchical rules for determining the country of origin of goods other
than textile and apparel products which are covered by Sec. 102.21. If
the country of origin of a good is not determined under Sec. 102.11(a)
or (b), Sec. 102.11(c) of the hierarchy must be considered. Thus, by
the time Sec. 102.11(c) of the hierarchy is reached, it already has
been determined: (1) That the processing performed with respect to
foreign materials contained in the good was insufficient to meet the
specific tariff rule under Sec. 102.20; and (2) for mixtures and
composite goods, that there is no single material that imparts the
essential character to such goods.
Consequently, when this provision is applicable, the country of
origin of such sets, mixtures, or composite goods is the country or
countries of origin of those materials or components meriting equal
consideration for determining the essential character of the good. A
material or component need not be determined to actually impart the
essential character to a good in order to merit equal consideration
(i.e., be considered a consequential material or component) for such
purpose of making the essential character determination for
classification or origin purposes.
Section 102.11(c) is not a departure from Customs practice under
the country of origin marking statute. Indeed, it follows and is
specifically intended to codify Treasury Decision (T.D.) 91-7, dated
January 8, 1991, in which Customs considered, inter alia, the country
of origin marking requirements of GRI 3, HTSUS, sets, mixtures and
composite goods. In this decision, Customs stated that, notwithstanding
that these goods may be classified pursuant to GRI 3(b) on the basis of
the material or component that imparts the essential character to the
good, ``if the materials or components are not substantially
transformed as a result of their inclusion in a set or mixed or
composite goods * * * each item must be individually marked to indicate
its own country of origin.'' Contrary to the suggestions by the
commenters, the practice established in T.D. 91-7 has not been limited
to ``sets'', but also has been applied to mixtures and composite goods.
See HQ 735085 dated June 4, 1993.
With regard to the suggestion by one of the commenters that the
Part 102 rules contain an escape clause, it is the opinion of Customs
that such a clause would negate the primary benefit of these rules:
Codification of the substantial transformation principle as interpreted
by Customs and the courts, while providing predictability, transparency
and objectivity in origin determinations.
Sections 102.12 and 102.11(b)(2)--Fungible Goods and Materials
Comment: One comment was received regarding Sec. 102.12 which
provides for the country of origin determination of commingled fungible
goods to be made by either direct physical identification or, if that
is impractical, by the use of one of the inventory management methods
provided under the Appendix to Part 181 of the Customs Regulations
(which implements the preferential tariff treatment provisions of the
NAFTA). While this commenter endorsed the need for an alternative
method to physical identification, the commenter stated that the use of
an inventory management method to determine origin of these goods is
not workable. As an alternative, the commenter suggests that Customs
expand and codify the ``major supplier'' marking policy that exists for
country of origin marking of fruit juice products made from juice
concentrate of various countries.
Customs Response: First, it should be clarified that the ``major
supplier marking'' policy is not an origin rule, but rather is a manner
of marking policy that is applicable to certain goods after the
determination of origin is made. In contrast, Sec. 102.12, like all of
the rules of part 102, will be used to determine the origin of the good
at issue. It is only after reaching the origin determination that
Customs can address the issue of the appropriate manner of marking the
good for purposes of 19 U.S.C. 1304. Both the ``major-supplier'' rule,
which applies to manner of marking, and the inventory management
option, which is used to determine origin, co-exist. If, under the
inventory management method, a single origin is determined, there is no
need to use a ``major-supplier'' approach to mark the good in question.
In T.D. 89-66, dated April 7, 1989, which was cited by this
commenter, Customs addressed only the issue of the number of countries
representing sources of the foreign juice concentrate that had to be
physically identified on the retail juice products. The question of
origin regarding the juice products already had been settled as a
result of the Court of International Trade decision in National Juice
Products Assn. v. United States, 628 F.Supp. 978 (CIT 1986).
Therefore, Customs reserves the right to address the manner of
marking issue relating to commingled goods and materials on a case-by-
case basis similar to the way the issue was addressed for the juice
concentrate products. Customs believes, however, that
Secs. 102.11(b)(2) and 102.12 provide a practical solution to the
problems that gave rise to the major supplier country of origin marking
policy. These provisions allow for practical and logistical problems to
be resolved at the time the origin determination is being made for
fungible goods and materials. Contrary to the commenter's suggestion,
the specific inventory management methods set forth in the appendix to
part 181 of the Customs Regulations are not so circumscribed to the
NAFTA preference rules that they cannot be employed for other origin
determination purposes. The examples provided in that Appendix clearly
illustrate how accounting methods can be used to assign origin to
inputs and outputs. Therefore, Customs believes that inventory
management methods allow for adaptable recordkeeping that provides
another option to determine origin.
Section 102.13--De Minimis
Comments: Two commenters expressed concern that the de minimis rule
set forth in Sec. 102.13 is not applicable to certain agriculture
products. These commenters note that if a ``major supplier'' marking
rule is adopted, it can include a de minimis amount of 7 percent.
Customs Response: These commenters also confuse ``manner of
marking'' issues with ``determination of origin'' issues. Section
102.13 is only applicable in conjunction with the specific tariff rules
of Sec. 102.20. Due to the nature of these products and because of
health and food safety concerns, Customs has exercised its discretion
not to allow a de minimis standard to apply in determining the origin
of most agricultural products. This policy, which is incorporated into
Sec. 102.13, is consistent with Customs' past practice with regard to
country of origin determinations of agricultural products. Therefore,
Customs will retain the rule in Sec. 102.13 as it currently exists.
Removal of Sec. 102.16--Goods and Its Parts; Parts of Parts
Comments: Two commenters express concern that, by the elimination
of Sec. 102.16, Customs is adopting an ``essential character'' standard
in its origin hierarchy for all goods (except for
[[Page 28938]]
``sets'') for which country of origin is not determined pursuant to
Sec. 102.11(a). Another commenter submits that by eliminating
Sec. 102.16, Customs ignores the situation in which imported goods
classified as an ``unfinished article'' under GRI 2(a) may be subject
to extensive and significant manufacturing processes that change the
name, character, or use of the article and add enormous value to the
finished product. This commenter suggests adopting the NAFTA preference
rules which in some cases include a value added criterion for
determining ``originating'' status.
In opposing the removal of Sec. 102.16, these commenters also
expressed concern that the hierarchy set forth in Sec. 102.11 does not
codify the principle of substantial transformation for goods classified
pursuant to GRI 2(a) and the court's decision in United States v.
Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); on the other
hand, one of the commenters suggests that origin would not necessarily
be determined under Sec. 102.11(b) (on the basis of essential
character) if several equally important parts are assembled. Another
commenter sought specific clarification in connection with the removal
of Sec. 102.16 as to whether the country of origin of a single
component which has not undergone the applicable change in tariff
classification will always be found to impart the ``essential
character'' to the product.
Customs Response: It is apparent that these commenters have assumed
that interim Sec. 102.16 had a much broader application than it
actually did. First, Sec. 102.16, by its very terms, only applied to
goods which were assembled from parts that were classified along with
the good in the same undivided heading or in the same subheading.
Second, even when Sec. 102.16 was applicable, the country of origin of
the good would not always be determined under Sec. 102.16. If pursuant
to this section Customs concluded (as has happened in some instances)
that there was no substantial transformation of the parts, then resort
must be had to the next step in the hierarchy under Sec. 102.11, that
is, paragraph (b) (or paragraph (c) if the good is a ``set''). In other
words, Sec. 102.16 was only applicable within the context of
Sec. 102.11(a)(3) and the specific tariff rules of Sec. 102.20. It did
not have a life of its own.
Customs also does not agree with the other underlying premise of
these comments, i.e., that Customs is creating the ``essential
character'' standard. As Customs thought had been made clear in the
SUPPLEMENTARY INFORMATION portion of the May 5, 1995, notice, whether
or not there is a change in the essential character of an article is
the principle factor considered by the courts in determining whether
there has been a substantial transformation. In United States v.
Gibson-Thomsen Co., supra, the court found that the marking statute was
not intended by the Congress to have application to an imported article
further processed in the United States so that it became a ``new
article having a new name, character and use'' (emphasis added).
Although the courts with customs jurisdiction in more recent cases,
and Customs in its rulings, have often characterized the standard as
``new name, character or use'', the courts and Customs have actually
required a change in the name, character and use of an imported article
for a finding of substantial transformation into a new and different
article of commerce. In addition, the courts have actually given much
less significance in recent cases to the ``name'' and ``use'' of an
article but have emphasized the significance of a change in its
``character'' in making substantial transformation decisions. See,
e.g.: National Juice Products Assn. v. United States, supra; Uniroyal,
Inc. v. United States, 542 F.Supp. 1026 (CIT 1982); and National Hand
Tool Corp. v. United States, 16 CIT 308, aff'd 989 F.2d 1201 (Fed. Cir.
1993). Therefore, consistent with the courts' interpretation of the
substantial transformation standard over recent years, Customs has
administered the standard as originally enunciated by the Gibson-
Thomsen Co. decision as requiring a change in the name, character and
use of the article and has placed more emphasis on a change in the
character of the article than on any change in its name or use. With
regard to one of the commenter's suggestions of using the NAFTA
preference rules incorporating a value-content requirement, Customs
notes that even the Court of International Trade has stated that
``there is no reason to find `substantial transformation' on the basis
of value added in the United States.'' National Hand Tool Corp. v.
United States, supra.
As previously noted, the Sec. 102.11 hierarchy does not stop at the
failure of the foreign materials to meet the specific tariff rule of
Sec. 102.20. Therefore, one commenter correctly observed that in the
case involving multiple parts that are classified in the same undivided
heading or same subheading as the finished good (e.g., multiple
forgings for a single hand tool), it is possible to conclude that no
single one of those parts imparts the essential character to the
finished tool. (For purposes of this determination under
Sec. 102.11(b), materials which are classified at the subheading level
specified in the rule under a general descriptive provision (e.g. a
``parts'' provision) will be considered, when distinct in style or
type, as separate materials, while materials which are classified at
the specified subheading level under a provision which reflects a more
specific description (e.g. ``fresh cut flowers'' under subheading
0603.10) will be considered collectively as a ``single material''.) If
the good is not classified as a ``set'', ``mixture'' or ``composite
good'', Sec. 102.11(c) would not be applicable and in such instance
Sec. 102.11(d) would be applicable. If the production of the good from
the parts involved more than ``simple assembly'' or ``minor
processing'', then it is possible to conclude pursuant to
Sec. 102.11(d)(3), that the country of origin of the good is the last
country in which the good underwent production.
In response to the question of whether, if there is only one
component in a good which is classified in a provision from which a
change in tariff classification is not allowed under the Sec. 102.20
rule, that one component always will determine the country of origin,
the answer is yes for the following reason. The specific tariff (tariff
shift in most cases) rules were developed with the specific view of not
allowing a change in tariff classification from materials that can
impart the essential character to the good. In those instances in which
the tariff shift rule excludes a particular tariff provision, Customs
has determined that the processing required to shift from that tariff
provision to the provision for the good is not, in itself, sufficient
to result in a change in the essential character of the materials
classified in the provision from which a change is not allowed.
Therefore, unless the good is classified as a set, if a good is made
from a single material that is classified in a tariff provision from
which a change is not allowed, the single material will be found under
Sec. 102.11(b) to impart the essential character to the good, and the
country of origin of that material will be the country of origin of the
good under Part 102.
As an example of the foregoing, a forging for a flat wrench is
imported into the United States. The shape of the flat wrench is
defined by the forging such that the two teeth of the open end of the
wrench are in place with just a thin web of metal which must be
removed, and the closed end of the wrench (a circle) also has a thin
piece of metal inside which must be removed, and then heat treated,
belt polished, vibrated, acid cleaned, and chrome
[[Page 28939]]
plated. If the flat wrench forging is the only material that does not
meet the tariff shift rule under Sec. 102.20 as a result of being
classified in a provision from which a change is not allowed (the
forging is usually classified in the same provision as the finished
wrench), this is the single material that imparts the essential
character to the finished flat wrench, and the country of origin of
this material is the country of origin of the finished flat wrench. In
order to clarify this issue, Sec. 102.18(b) has been modified as set
forth below to make it clear that if there is only one component or
material that is classified in a provision from which a change in
tariff classification is not allowed under the Sec. 102.20 rule, that
material will constitute the single material that imparts the essential
character to the good for purposes of determining country of origin
under Sec. 102.11(b).
Section 102.18(a)--Rules of Interpretation
Comments: One commenter states that since Sec. 102.18(a) only
applies to rules which contain an exception relating to GRI 2(a) of the
HTSUS, two questions remain unanswered. First, how will the origin
differ when an unassembled article is shipped with all of its parts in
one shipment, therefore invoking GRI 2(a), versus shipping parts
separately and thereby not triggering the application of GRI 2(a)?
Second, does the assembly of the article under either of the above
scenarios determine the country of origin of the assembled article? If
the answer to the second question is yes, the commenter questions
whether this applies only when the rule for the article does not
contain a GRI 2(a) exception.
Another commenter presents an example of semi-knocked-down
(``SKD'') bicycles (classified under heading 8712), which are complete
bicycles, individually boxed and ready for sale to the ultimate
purchaser which, however, are not fully assembled (the seat, seat post,
front wheel [consisting of a hub, spokes, nipples, rim, tire, inner
tube and rim strip], pedals, handlebars and handlebar stem are not
assembled to the bike, but are simply placed separately in the shipping
carton in order to reduce the size of the carton thereby reducing
freight costs). The SKD bicycles are classifiable as complete bicycles
under GRI 2(a), and the commenter seeks confirmation that as a result
of the applicability of Sec. 102.18(a) and the proposed new text of
Sec. 102.17(e), the assembly or collection of the bicycles will not
result in a tariff shift.
Customs Response: The first commenter correctly notes that
Sec. 102.18(a) is applicable only when there is reference to GRI 2(a)
in a specific tariff rule under Sec. 102.20, which, in turn, only
applies in the context of determining origin under Sec. 102.11(a)(3).
Section 102.18(a) operates just like the definitions in Sec. 102.1: It
cannot be invoked unless specifically referenced in a rule. Thus, the
question of whether or not the assembly of an unassembled good confers
origin cannot be answered in the abstract. This determination will
depend upon the application of the hierarchical rules of Sec. 102.11 to
the specific goods and parts in question. Customs also agrees with the
conclusions of the second commenter, but probably for slightly
different reasons. The response below to the example presented by the
second commenter illustrates how the GRI 2(a) exception operates in the
Sec. 102.20 rules.
The Sec. 102.20 specific tariff shift rule for bicycles, which are
classified in heading 8712, HTSUS, is as follows:
8711-8713
A change to heading 8711 through 8713 from any other heading,
including another heading within that group, except from heading
8714 when that change is pursuant to General Rule of Interpretation
2(a).
If the production of an SKD bicycle in Country A entails the use of
a subassembly imported from Country B that is classifiable under
heading 8714, HTSUS, Sec. 102.18(a) is applicable and the tariff shift
from the subassembly (classifiable under heading 8714) to the SKD
bicycle (classifiable under 8712 pursuant to GRI 2(a)) will not be
allowed.
Also, pursuant to the proposed new text of Sec. 102.17(e), a tariff
shift would not be allowed for collections of bicycle parts or
incomplete bicycle ``subassemblies'' which as collected are
classifiable in the same manner as the complete bicycle, pursuant to
GRI 2(a). However, neither Sec. 102.17(e) nor Sec. 102.18(a) will be
the reason that the final assembly of the SKD bicycle into the fully
assembled bicycle does not result in a tariff shift. In this instance,
the tariff shift does not occur simply because the unassembled SKD
bicycle and the fully assembled bicycle are classified in the same
tariff provision.
Section 102.19--NAFTA Preference Override
1. Section 102.19(a)
Comments: One commenter believes that the application of this
provision can result in more than one NAFTA country of origin. Another
commenter states that Sec. 102.19(a) should be applicable to goods the
origin of which is determined under Sec. 102.21.
Customs Response: Customs disagrees with the comment that this
provision can result in more than one country of origin. In
Sec. 102.19(a), the word ``single'' before the words ``NAFTA country''
expressly makes clear that it is impossible for originating goods that
meet the criteria of this provision to have multiple countries of
origin. Customs has not been presented with a scenario in which two
parts of a good were produced at the exact same time in two NAFTA
countries, which would be the only circumstances in which there can be
two last NAFTA countries ``in which the good underwent production other
than minor processing''. Moreover, Sec. 102.11(c) will never be
applicable to goods that meet the criteria of Sec. 102.19(a), since
this provision is triggered whenever a single country of origin is not
determined after applying both Sec. 102.11(a) and Sec. 102.11(b).
Customs, however, agrees that Sec. 102.21 should be included within
the scope of Sec. 102.19(a). Paragraph (c) of Sec. 102.21 (``general
rules'') already incorporates by reference all of the additional
requirements and conditions of Secs. 102.12 through 102.19.
Nevertheless, in order to make this point even clearer, Sec. 102.19(a)
as set forth below has been modified to expressly refer to Sec. 102.21
so that if a good, which otherwise meets the requirements of
Sec. 102.19, is not determined under Sec. 102.21 to have a single NAFTA
country, the country of origin of such a good will be determined under
Sec. 102.19.
2. Section 102.19(b)
Comments: Two commenters requested clarification that this
provision does not apply for marking purposes but rather applies solely
for customs duty purposes.
Customs Response: Customs agrees that this provision does not apply
for country of origin marking. As stated in the SUPPLEMENTARY
INFORMATION portion of the May 5, 1995, notice of proposed rulemaking,
the term ``Customs duty purposes'' in Sec. 102.19(b) is intended to
include merchandise processing fees. This term, however, does not
include country of origin marking. Customs believes, however, that the
fact that the provision clearly states it is applicable for ``Customs
duty purposes'' makes it clear that the use of this provision for any
other purpose, such as for country of origin marking, would be
improper.
[[Page 28940]]
Therefore, Customs believes that there is no need to amend the
provision.
Headings 0202, 0210 and 1602 (Meats)
Comments: One comment concerned the fact that the specific tariff
rules for these goods do not allow some operations, such as the
grinding or blending of imported beef with U.S. beef to produce
hamburger meat or patties, to constitute an acceptable change in tariff
classification. This commenter also believes that the USDA has the
specific statutory jurisdiction over the marking of meat and poultry
products whether imported or domestic, pursuant to the Federal Meat
Inspection Act, 21 U.S.C. 601.
Customs Response: Customs disagrees. Although Customs has not
issued a specific ruling regarding this issue, it is Customs' position
that the grinding or blending of foreign raw beef with U.S. beef does
not constitute a substantial transformation. In other cases concerning
food, Customs has not recognized merely blending or chopping food,
without cooking or other preparation, to constitute a substantial
transformation. In this regard, it should be noted that consistent with
its application of the substantial transformation principle, the tariff
shift rules for prepared meat (heading 1601) allow a change from any
other chapter, which will include the frozen, salted, and dried meats
of Chapter 2.
With regard to the country of origin marking of imported meats, it
suffices to point out that 19 U.S.C. 1304, the country of origin
marking statute, applies to all goods of foreign origin, unless
specifically exempt by statute or by the specific regulations
authorized by the statute. This statute does not exempt imported meat
products from marking, unless Customs determines that the product is
substantially transformed into a new and different article by the U.S.
importer/processor. As stated above, Customs does not view the mere
grinding of fresh meats into hamburger as a substantial transformation;
therefore, Customs believes that, notwithstanding any other domestic
laws that may be applicable for its marking, such meats should be
marked as to country of origin prior to reaching the ultimate purchaser
thereof in the United States. In connection with this issue, it should
be noted that Customs has issued a General Notice regarding the country
of origin marking of beef jerky. 26 Cust. Bull. And Decisions 51
(December 16, 1992). While Customs in this General Notice recognized
that there may be conflicting country of origin marking requirements
imposed by the USDA and Customs, Customs nevertheless explained the
legal basis for the Customs marking determination as well as the basis
for Customs jurisdiction in the matter.
Heading 0304 (Fish Fillets and Other Fish Meat, Fresh, Chilled, or
Frozen)
Comment: The specific rules for the goods of this heading, except
for fillets, require a change to these goods from any other chapter,
while for fish fillets the rules allow a change to this heading from
any other heading. One commenter states that the rule should generally
allow a change to goods of this heading from any other heading, citing
the belief that the production of fish meat requires as much or more
processing than the production of fillets.
Customs Response: The commenter has not provided, nor has Customs
been able to find, any evidence to substantiate the claim that the
production of fish meat results in a substantial transformation of the
fish. The Explanatory Notes to the Harmonized System describe ``other
fish meat'' merely as fish meat from which the bones have been removed,
whereas the production of fillets from fish involves specific
operations which have been recognized by the Court of International
Trade as resulting in a substantial transformation of the fish. See
Koru North America v. United States, 701 F.Supp. 229 (CIT 1988),
discussed in the SUPPLEMENTARY INFORMATION portion of the May 5, 1995,
notice of proposed rulemaking.
Heading 0710 (Vegetables, Uncooked, Steamed, Boiled or Frozen)
Comments: Two comments were received concerning this specific rule.
These commenters expressed concern that the rule does not recognize a
substantial transformation resulting from the processing performed to
produce mixtures of vegetables classified in subheading 0710.90. One
commenter noted that in producing their vegetable combinations,
imported vegetables are combined with domestic vegetables in precise
mixtures through highly sophisticated proprietary mathematical
formulas, using state-of-the-art weighing and mixing processes.
According to one commenter, the combinations are the result of
extensive marketing and product research as well as capital investment
and technology to appropriately provide for the blending of the
different vegetables. Therefore, these commenters suggest that this
specific rule be amended to allow a change to subheading 0710.90
(mixtures of vegetables) from any other subheading, provided that no
single vegetable ingredient of foreign origin constitutes 75 percent or
more of the product by net weight.
Customs Response: Customs cannot agree to this proposal. Customs
addressed the very facts presented by these commenters in a ruling
issued in the year before the proposed rules were published. In HQ
735085, dated June 4, 1993, the frozen vegetable products were produced
by combining foreign broccoli, cauliflower, water chestnuts, and peas
with domestic carrots, yellow peppers, and asparagus and then packaging
them for retail sale. Beyond bagging, there was no processing of the
combined frozen vegetables, such as cooking or adding sauces. Customs
found that the individual imported vegetables retain their identities
after the combining operations. Consequently, the vegetable mixtures
were not considered different kinds of food articles, and imported
vegetables were not considered to have undergone a substantial
transformation. In HQ 735085, Customs distinguished prior rulings such
as HQ 555524, dated April 11, 1990, (which involved manufacturing soup
by mixing eleven ingredients, boiling the mixture to achieve desired
consistency, and packaging for retail sale). Customs still adheres to
the position expressed in HQ 735085 and for this reason does not agree
that the specific tariff rule for vegetable mixtures classified in
subheading 0710.90 should be amended as proposed by the commenters.
Headings 0904-0910 (Spices)
Comment: One comment was received concerning the proposal to delete
the second tariff shift rule for headings 0904-0910, which provides for
a change to crushed, ground, or powdered products of heading 0904
through 0910 from within Chapter 9, if put up for retail sale. This
commenter submits that the cleaning (by gas treatment or otherwise),
crushing or grinding, and retail packaging of spices substantially
transforms the imported whole spices into new and different articles of
commerce having a new name, character or use.
Customs Response: Customs agrees. In view of the commenter's
analysis and in light of the fact that Customs Headquarters has never
issued a binding letter ruling with respect to the country of origin
marking of spices, Customs has reconsidered the proposal to amend the
Sec. 102.20 rules for these goods and has reverted to its original
position, published in T.D. 94-4 (59 FR 110) on January 3, 1994.
Accordingly, the May 5, 1995, proposal to delete the second tariff
shift rule set forth in Sec. 102.20 for goods of headings 0904-0910
should
[[Page 28941]]
not be adopted, and the interim tariff shift rules as published in the
January 3, 1994, document are reflected in this final rule document.
Heading 1517 (Vegetable oil)
Comment: One comment was received in connection with the rules for
this heading. The interim rules for this heading provided for a tariff
classification change to subheading 1517.10 (margarine, excluding
liquid margarine) from any other heading and a change to subheading
1517.90 (other edible mixtures or preparations of animal or vegetable
fats) from any other chapter. In consideration of an initial comment,
Customs proposed in the May 5, 1995, document to amend the rule for
subheading 1517.90 by adding an alternative second tariff shift rule
which would allow a change from any other heading so long as ``no
single oil ingredient of foreign origin constitutes more than 60
percent by volume of the good''. The commenter believes that the
processing and blending required to create various blends and grades of
a type of oil (e.g. palm and sheanut oils) requires rigorous quality
control procedures in order to achieve the necessary physical
characteristics and thus should be considered a substantial
transformation whether or not the resulting product contains more than
60 percent by volume from a single foreign country.
Customs Response: Customs disagrees. First, the tariff shift rule
for subheading 1517.90, as proposed to be amended, is supported by the
case law. See National Juice Products Association v. United States,
supra, where the Court of International Trade upheld Customs
determination that imported orange juice concentrate is not
substantially transformed when mixed with water, orange essences,
orange oil and in some cases fresh juice and either packaged in cans
and frozen or pasteurized, chilled and packed in liquid form, and
Coastal States Marketing, Inc. v. United States, 646 F.Supp. 255 (CIT
1986), where the court held that mixing Soviet Union gas oil with
Italian fuel oil in Italy did not result in a substantial
transformation such that the mixture became a product of Italy. In both
of these cases, the court concluded that the essential character of the
foreign component (juice concentrate and Russian oil) remained
unchanged after the mixing process. The proposed tariff shift rule
which would allow a change of origin if no single foreign oil
ingredient in the mixture exceeds 60 percent of the mixture is designed
to ensure that there is a change in the essential character of the
foreign vegetable oil. This proposed rule is consistent with the
proposed rule for mixtures of juices (e.g., a mixture of apple, grape,
papaya juices), which is based upon the conclusion that in such
mixtures, the individual fruit juices would lose their separate
identities and thus there would be a change in the name, character and
use of the individual juice ingredients. Thus, this rule represents an
effort to distinguish between those blending operations which generally
do not result in a substantial transformation and other blending
processes which can result in a substantial transformation due to a
change in name, character, and use.
However, Customs believes that a technical correction of the
proposed amendment to the Sec. 102.20 rule for this subheading is
required, involving expression of the 60 percent requirement in terms
of ``weight'', rather than in terms of ``volume'', because the unit of
measure indicated in the HTSUS for subheading 1517.90 is kilograms. The
second tariff shift rule for subheading 1517.90 as set forth below has
been modified accordingly.
Chapter 20 Note
Comments: The Note for the Chapter 20 rules under Sec. 102.20
provides that, notwithstanding the specific rules of the chapter, nuts
of Chapter 20 that have been prepared merely by roasting, either dry or
in oil (including processing incidental to roasting), shall be treated
as a good of the country in which the fresh good was produced. One
commenter submits that the roasting of nuts should be considered a
substantial transformation. This commenter also suggests that the
mixing of nuts should constitute a substantial transformation since FDA
regulations (21 CFR 164.110) consider mixed nuts a standardized food
which, as such, must meet certain formulation requirements.
Customs Response: Customs disagrees. It has been the Customs
position for ten years that roasting, or roasting and salting, or
roasting and salting and coloring, of pistachio nuts, without more,
does not result in a substantial transformation. See T.D. 85-158, dated
October 15, 1985. Thus, the Chapter Note is consistent with prior
Customs position and practice for these goods. With regard to the
mixing of different nuts, Customs is not persuaded, by the fact that
the Food and Drug Administration considers these mixtures to be a
standardized product, that various types of nuts have been
substantially transformed as a result of being combined with one
another. The same analogy could have been made with regard to the
orange juice concentrate and retail juice beverages involved in the
National Juice Products Ass'n., supra. Moreover, just as Customs
believes that the individual frozen vegetables which are combined and
packaged for retail sale remain separately identifiable (HQ 735085,
June 4, 1993), Customs maintains that the individual types of nuts that
are blended together after roasting and salting do not lose their
identities and therefore are not substantially transformed into new and
different articles of commerce, having a new name, character, and use.
Subheadings 2009.11-2009.30 (Fruit and Vegetable Juices)
Comment: One comment was received concerning this tariff shift
rule. This commenter suggested that this rule, which allows a change to
these subheadings from any other chapter, be amended to preclude a
change from heading 0805 (fresh or dried citrus fruit). The commenter
points out that this change would make these rules consistent with the
NAFTA preference rules for these goods.
Customs Response: Customs cannot agree. First, it should be pointed
out that the purpose for development of these rules is not to provide
origin determinations that are necessarily consistent with the NAFTA
preference rules (19 U.S.C. 3332). Instead, Customs' goal has been to
develop rules that would codify the substantial transformation
principle as interpreted by the courts and Customs. Customs recognizes
that the NAFTA preference rules are not always consistent with the
origin determinations reached under the substantial transformation
principle. As a result sometimes the part 102 rules will be less
restrictive and in some cases they may appear to be more restrictive.
The part 102 rules are less restrictive than the NAFTA preference rules
for goods of subheading 2009.11 through 2009.30 because Customs has
consistently recognized the production of fruit juices from the fresh
fruit as a substantial transformation of the fresh fruit into a new and
different article of commerce. See HQ 555982 dated August 1991
(substantial transformation of grapefruit and oranges made into juice
concentrate) and HQ 084346 dated August 8, 1989 (substantial
transformation of cranberries made into juice concentrate).
Subheading 2101.10 (Extracts, Essences and Concentrates of Coffees)
Comments: Three comments were received concerning the Sec. 102.20
tariff shift rule for heading 2101, which requires a change to heading
2101 (extracts, essences, and concentrates of
[[Page 28942]]
coffee, etc.) from any other heading. These commenters submit that the
rule should be amended to allow a change to subheading 2101.10.21
(extracts, essences, and concentrates of coffee) from elsewhere within
heading 2101 since they believe that a change from ``soluble coffee
powder'' to ``retail instant coffee products'' should be recognized as
a substantial transformation. They cite as support for their position
the argument that bulk soluble powder is not purchased by consumers but
by coffee manufacturers and is used in non-coffee products such as ice
cream as well as in coffee products. They further submit that the use
of expensive machinery and the employment of experts and technically-
skilled persons are necessary in order to blend, agglomerate, aromatize
(often the flavoring and aromas are proprietary) and eventually package
the product for retail sale. They claim that the cost of such
processing runs about 120 percent of the cost of the soluble powder.
Customs Response: Customs does not agree that the operations
described above result in a substantial transformation of water soluble
coffee powders (known technically in the trade as spray-dried coffees).
Customs addressed this issue in a ruling as early as 1986 (HQ 727913
dated February 5, 1986). In that case, the agglomerated coffee was
produced in Canada as a result of blending and agglomeration of various
Latin American spray dried coffees. Customs found that the agglomerated
coffee imported into the United States from Canada had to be marked to
indicate the individual Latin American countries.
Customs most recently addressed this issue in HQ 734479 issued on
January 29, 1993. Customs still does not believe that the blending and
agglomeration of spray dried coffees from different countries result in
a new and different article of commerce, having a new name, character
and use. The facts presented in the 1993 ruling concerned the
processing of the various Latin American blends of spray dried coffees
in a European Community (EC) country, which at that time was subject to
the 100 percent special duty rates applicable to these products from
the EC. After reviewing the technical literature regarding the
processes, Customs concluded that blending and agglomerating spray
dried coffee constituted refining and finishing operations which did
not change the fundamental character or use of the spray dried coffee.
Customs further concluded, consistent with prior rulings, that the
agglomerated coffee, while an improved product, remained instant coffee
after the processing, and therefore, was not considered an EC product
but a product of the various Latin American countries from which the
coffee originated. As one requester of a marking ruling issued in 1991
pointed out, the ``spray-dried powder is a finished form of coffee that
can be dissolved in hot water to produce a tasteful cup of coffee.''
Customs believes that such a statement is testament to the absence of a
substantial transformation when the coffee powders are subjected to the
agglomeration process.
Heading 2710 (Petroleum Products)
Comment: One comment was received concerning the tariff shift rules
for this heading, which allow a change to the heading from any other
heading or a change to goods of the heading from other goods of that
heading if the change resulted from a chemical reaction (defined in the
Chapter 27 Note). The commenter suggests that the tariff shift criteria
applicable to heading 2710 should be expanded to include a change
within heading 2710 from motor fuel blending stocks to motor fuel. The
commenter argues that finished gasoline differs from each of the
blending stocks in name, character and use. Thus, under the traditional
change in name, character and use test, the commenter submits that the
blending of the various stocks to produce gasoline constitutes a
substantial transformation.
Customs Response: Customs disagrees. The specific rules for heading
2710 codify prior Customs rulings regarding the country of origin of
various petroleum products. For example, in HQ 555032 dated September
23, 1988, and HQ 557180 dated December 23, 1993, Customs addressed the
issue of whether certain petroleum products, such as gasoline and
diesel fuel, produced in the U.S. Virgin Islands qualify for duty-free
treatment under General Note 3(a)(iv), HTSUS (the duty-free program for
products of U.S. insular possessions). Customs determined that one or
more substantial transformations occurred when crude oil imported into
the Virgin Islands was subjected to refining and other processes,
resulting in chemical reactions and the creation of various motor fuel
blending stocks and other motor fuel components. Thus, it was
determined in the above rulings that the petroleum products qualifed as
``products of'' the insular possession. While Customs also held in HQ
555032 and HQ 557180 that the subsequent blending of the blending
stocks and other motor fuel components in the Virgin Islands to create
the final petroleum products resulted in a substantial transformation,
this portion of these rulings was not an origin determination but
rather pertained solely to the issue of whether the imported crude oil
could be considered a domestic material for purposes of the foreign
material value limitation of General Note 3(a)(iv), HTSUS. Therefore,
the Sec. 102.20 rules, which provide for a change to heading 2710 from
any other heading (e.g., crude petroleum of heading 2709) or a change
to any good of heading 2710 from any other good of heading 2710,
provided the change is the result of a chemical reaction (e.g.,
alkylate produced from a chemical reaction affecting a heading 2710
good), are consistent with Customs country of origin rulings on these
products. However, as Customs previously has stated, the Part 102 rules
will not be applicable for determining the value content requirements
under duty preference programs.
Subheading 2936.90 (Vitamins)
Comment: One comment was received concerning the specific tariff
rule for these goods. This commenter suggested that the rule, which
provides for a change to this subheading from any other subheading
except from subheadings 2936.10 through 2936.29, should be less
restrictive. This commenter believes that changes from the other
vitamin provisions in this heading should be allowed.
Customs Response: Customs disagrees. Consistent with Customs'
interpretation of the substantial transformation standard, this rule is
designed to keep simple blending of different vitamins, which after
such blending remain classified in this heading, from being considered
a substantial transformation. Customs believes that no degree of
blending can substantially transform foreign constituent vitamin
components into a product of the country in which the blending occurs.
The Customs position on this matter is consistent with the position
regarding similar processing of other chemical products, such as
pharmaceuticals and herbicides. See the analysis of comments below in
connection with these products.
Chapter 30 (Pharmaceuticals)
Comments: Six comments were filed in response to the interim and
proposed Sec. 102.20 rules applicable to pharmaceuticals of Chapter 30.
These rules, for the most part, allow a change to the subheadings of
this chapter, which consist of prepared pharmaceuticals, from any other
subheading except from the bulk pharmaceuticals of Chapter 29 or other
[[Page 28943]]
provisions. The commenters essentially claim that the formulation of
dosage form pharmaceuticals is a substantial transformation of the bulk
pharmaceuticals of Chapter 29. They claim that the Chapter 29
pharmaceuticals are unsuitable for therapeutic or prophylactic use. In
order to be usable, the commenters state that the pharmaceuticals must
be worked up to particular dosage forms which involves numerous complex
intermediate steps ranging from exact weighing to final presentation in
tablets, capsules, injections or ointments and which adds more than 50
percent to the value of the product. In this regard one commenter
argues that for a gastric acid secretion pharmaceutical, a substantial
transformation occurs when a special coating is given to the medicine
so that it can pass through the stomach intact for release in the
intestines. Finally, some commenters claim that the ``40 percent''
criterion that is contained in the specific rules for blends of
pharmaceuticals, is inconsistent with current practice. Under these
rules, if a mixture or blend of bulk pharmaceuticals, classified in
this chapter, contains at least 40 percent domestic content of the bulk
pharmaceutical, the specific tariff rule of Sec. 102.20 would be met.
Customs Response: Customs disagrees with these comments. Customs
believes that the Sec. 102.20 rules properly reflect Customs' current
position regarding the substantial transformation of bulk
pharmaceuticals. It is Customs' view as reflected most recently in 1993
(HQ 735146 issued on November 15, 1993 ) that the bulk (pure) active
pharmaceutical ingredient which is reduced in potency by dilution with
other inert ingredients, such as starch and other excipient, is not
substantially transformed into a new and different article having a new
name, character and use. The essential character of these products,
both chemically and functionally, remains the same after the processes
performed to make them readily consumable. For example, when Customs
concluded in the 1993 ruling that the processing of 100 percent pure
acetaminophen, through granulation and addition of excipient to make a
90 percent pure product that is then used to make tablets, was not a
substantial transformation, Customs took note of the following: (1)
Like most pharmaceutical products, the ``name'' of the product did not
change from the bulk pharmaceutical to the finished product (the
product was still referred to as ``acetaminophen''); (2) the ``use''
did not change, since both the original and finished products were used
for medicinal purposes (while the metabolic activity of the drug is
standardized as a result of a controlled dilution, it is not changed);
and (3) finally, the essential character of the product as a medicine
did not change even after processing into tablets. The essence of the
pharmaceutical ingredient had not changed fundamentally. Indeed,
regardless of the commercial brand under which it is marketed, the
product being purchased to provide pain relief is the drug,
acetaminophen. Similar rulings were issued previously in 1979 (HQ
005716 dated July 12, 1979, C.S.D. 80-34, with regard to the
granulation and dilution of Naproxin with starch) and in 1986 (HQ
554067 dated May 23, 1986, with regard to oxfendazole, a veterinary
drug, which was micropulverized and packaged into dosages fit for
veterinary use). Thus, in response to the comment concerning
encapsulation, Customs believes that this process does not alter the
fundamental nature of the pharmaceutical. Although it helps to deliver
the product, the pharmaceutical still has the same activity.
In response to the comments claiming that significant value is
added as a result of the processing of the bulk pharmaceuticals,
Customs finds relevant the fact that the Court of International Trade
has held that in determining the issue of substantial transformation,
the ``name, character, or use'' test should be sufficient since the use
of a value criteria can lead to anomalous results. National Hand Tool
v. U.S., supra. In any case, however, Customs believes that in regard
to the total production of pharmaceuticals classified in Chapter 30,
the predominate costs are incurred in the production of the bulk
pharmaceutical drugs classified in Chapter 29 and other chapters under
the HTSUS. In most instances, costs of end processing of the
pharmaceutical drug are inconsequential when compared to the enormous
costs involved in the multi-stage chemical reactions and separations
and the years of research needed to develop and produce the bulk
pharmaceutical.
Finally, Customs also disagrees with the commenters' objections to
the ``40 percent'' criterion in the tariff shift rules for
pharmaceuticals mixtures. Under this rule, a change of origin can occur
as a result of blending different imported bulk pharmaceuticals with
domestic pharmaceuticals if the finished product (i.e., the Chapter 30
product) contains at least 40 percent, by weight, of domestic bulk
pharmaceutical. Customs finds this rule to be entirely consistent with,
if not more liberal than, Customs' current practice of applying the
substantial transformation principle to blending operations involving
chemical products. Generally, the simple blending together of
chemicals, which does not result in a chemical reaction that creates a
new chemical has not been recognized as a substantial transformation.
However, if one or more of the chemical ingredients was produced in the
country where the blending occurs, Customs would not view the
production of the mixture as resulting solely from a simple combining
or blending operation. See, e.g., 19 CFR 10.195(a)(2). Customs,
however, does not always find a substantial transformation in cases in
which there is more than a simple blending. The ``40 percent'' rule,
however, codifies the position that when the blending operation
involves as least 40 percent domestic origin bulk pharmaceutical, it
will not be considered a simple blending and will always be sufficient
to confer origin.
Headings 3302 Through 3303 (Perfumes)
Comment: One comment was received concerning the Sec. 102.20 rules
for these goods. The first of the two rules disallows a change to
heading 3302 (mixtures of odiferous substances that are ``of a kind
used as raw materials in industry'') from essential oils of heading
3301 and from ethyl alcohols of headings 2207 and 2208. The rule for
perfumes and toilet waters (heading 3303) disallows a change from the
perfume oil mixtures and blends of subheading 3302.90. The commenter
objects to the above rules, claiming that they are too restrictive.
Customs Response: Customs disagrees. The commenters fail to note
that the rules do allow a change from the essential oils of heading
3301 to the perfumes and toilet waters of heading 3303, which is
consistent with Customs' application of the substantial transformation
principle to these goods. In HQ 723312 dated November 22, 1983 (cited
with approval in HQ 733945 dated March 26, 1991), Customs ruled that
the production of perfumes as a result of blending foreign essential
oil with U.S. origin denatured alcohol, stabilizer, coloring matter and
water resulted in a substantial transformation of the foreign essential
oil. The Sec. 102.20 rule for perfumes goes even further by allowing
the denatured alcohols included in the blend to be foreign as well.
Thus, it appears that the commenter's objection is to the fact that the
rules do not allow a simple dilution of perfume bases (a change from
subheading 3302.90 to heading 3303) or
[[Page 28944]]
a simple blending of essential oils and alcohols (a change from heading
3301, 2207 or 2208 to heading 3302). Customs believes that a simple
dilution or blending of these goods does not represent a substantial
transformation into a new and different article of commerce. However,
Customs believes that when the raw materials of headings 3301, 2207 and
2208 are processed to make a finished product such as perfumes or
toilet water, they have been substantially transformed, and, as stated
above, the Sec. 102.20 rule codifies this position.
Subheading 3402.11 (Linear Alkylbenzene Sulfonates)
Comment: Two comments were received concerning the Sec. 102.20 rule
for these goods which provides: ``A change to subheading 3402.11
through 3402.20 from any other subheading, including another subheading
within the group.'' Although both commenters support Customs' efforts
toward greater objectivity and predictability in origin determinations,
they suggest that a change from subheading 3817.10 to subheading
3402.11 should not be allowed since such a change can result from a
very simple process which does not result in a substantial
transformation.
Customs Response: Customs agrees that the described change should
not be recognized as constituting a substantial transformation. The
process normally involves in part the segregation of the individual
linear alkylbenzene components from mixed linear alkylbenzenes
classified in subheading 3817.10. However, in Sec. 102.20, Note 2 to
the Section VI (Chapters 28 through 38) tariff shift rules sets forth a
``Separation Prohibition'' provision which expressly precludes ``a
change from one classification to another merely as the result of the
separation of one or more individual materials or components from a
man-made mixture unless the isolated material/component, itself, also
underwent a chemical reaction.'' Therefore, Customs believes that the
concerns raised by the commenters will be resolved by this note.
However, in order to clarify this issue, the Sec. 102.20 rule for
subheading 3402.11 has been modified to make clear that a substantial
transformation does not result from a change from mixed linear
alkylbenzenes of subheading 3817.10.
Headings 3701-3703 (Photographic Film)
Comments: Two comments were received concerning these rules. One of
these comments focused primarily on the general result of operating
under Sec. 102.14 (U.S. goods returned) and thus is no longer relevant
in light of the adoption of the proposal to remove this section as
discussed above. The other commenter claims that the Sec. 102.20 rules
should allow a change in tariff classification from jumbo rolls of film
classified in subheading 3702.41 to the smaller sized film cartridges
classified in subheading 3702.51 and subheading 3702.41 so as to be
consistent with the substantial transformation principle.
Customs Response: Customs disagrees. The rules for these goods
require a change to headings 3701 though 3703 from headings outside
that group. It has been a longstanding position of Customs that cutting
to length and width does not result in a substantial transformation of
the article subjected to such processing. Customs specifically
addressed this issue in connection with the production of photographic
film cartridges in HQ 732842 dated February 23, 1990. In HQ 732842, the
foreign material consisted of sheets of photographic film in rolls
measuring 58 inches wide and 9,500 feet long, which were subjected to
processes consisting of applying a non-photosensitive emulsion coating,
cutting the bulk photographic film to length and width, inserting them
into cassettes, and then placing the cassettes into plastic sealed
containers and cartons for retail sale. The imported film base in HQ
732842 already had been ``sensitized'', i.e., it already had been
subjected to an application of photosensitive emulsion. (This is the
process which, in ORR 217-69 dated March 28, 1969, Customs had ruled
resulted in a substantial transformation of the film base into
photographic film, a new article with new physical characteristics
(light sensitivity and ability to form an image from which a positive
can be made) and new uses different from the base from which it was
made.) Thus, Customs concluded in HQ 732842 that the processes to which
the already-sensitized photographic film was further subjected (e.g.,
cutting to length and width, inserting into cartridges, and packaging)
did not result in a new and different article with new name, character
and use.
Customs believes that the positions expressed in the above rulings
properly interpreted the substantial transformation standard, and the
Sec. 102.20 rules for these goods are entirely consistent with these
rulings. The rules allow a change from headings 3701 through heading
3703 from headings outside the group. This would allow changes from the
unsensitized film base (plastic or paper provisions outside of Chapter
37), consistent with ORR Ruling 217-69. Moreover, the rules do not
allow a change from one size of sensitized film to another when the
difference in sizes is in terms of length and width.
Subheadings 3808.10 and 3808.20-3808.90 (Pesticides, Herbicides and
Fungicides)
Comments: Three comments were received. These commenters object to
the proposed tariff shift rules for subheadings 3808.10 and 3808.20-
3808.90 that do not allow a change in origin for bulk insecticides,
fungicides, herbicides, rodenticides or pesticides of Chapter 28 or 29
that are converted to Chapter 38 products. One commenter agrees that if
the conversion only represents mere dilution, there is no change in
origin; however, it is suggested that Sec. 102.17 of the interim
regulations disqualifies operations involving the mere dilution with
water or another substance. Rather, it is stated that some conversion
processes are more than ``mere dilution'', such as where an active
ingredient is converted to a finished product by formulation and
granulation. During formulation, the ingredient is blended with
selected inert ingredients and milled. Although the inert ingredients
do not chemically react with the active ingredient, it is stated that
they do provide a specific functionality as dispersants, wetting
agents, defoamers, buffers, binder, diluents, etc. Following the
formation process, the material undergoes granulation which is an
agglomeration process designed to produce product granules of specified
size and characteristics.
One commenter asserts that Customs ignores sophisticated
manufacturing procedures such as the conversion of bulk Flumetron into
the finished products ``Cotoran 4L'' and ``Cotoran DF''. ``Cotoran 4L''
is manufactured by grinding Flumetron and dispersing the ground product
in liquid. ``Cotoran DF'' is a dry herbicide produced by blending
Flumetron with inert materials (form of dilution) which is then
granulated into the finished product. Another commenter suggests that
origin should be conferred by processes such as chemical
transformation, physical processing that would place an herbicide into
a substrate or medium, and physical processing which modifies a
quality.
Customs Response:
Customs disagrees. These rules are consistent with Customs'
practice and interpretation of the substantial transformation
principle. In HQ 555064 dated March 29, 1990, Customs determined that
the formulation of
[[Page 28945]]
propanil-4, a herbicide for rice, from technical propanil did not
constitute a substantial transformation for purposes of the Caribbean
Basin Economic Recovery Act. This decision was based on T.D. 78-168, 12
Cust. Bull. 353 (1978), which held that the formulation of the
herbicide diuron wettable powder by mixing technical diuron with
various agents was not a substantial transformation for purposes of the
Generalized System of Preferences. These findings are also consistent
with National Juice Products Association v. United States, supra, where
the court found that imported manufacturing orange juice concentrate
was the very essence of frozen concentrated orange juice and
reconstituted orange juice. The court noted that the addition of water,
orange essence and oils to the concentrate, while making it suitable
for retail sale, did not change the fundamental character of the
imported product and, therefore, was not a substantial transformation.
While Customs does not dispute the importance to the end user of
placing herbicides, such as Flumetron, into its final dilute wettable
form, it is the opinion of Customs that these final steps simply place
the herbicide in an applicable form without changing its function or
chemical structure. Additionally, because the bulk product is more
compact than the finished product, it is economically feasible to trade
the bulk form (``Flumetron'') of the herbicide rather than the final
dilute wettable or liquid forms of the herbicide (``Cotoran''). It is
also the opinion of Customs that these tail-end procedures are far less
important when compared to the production of the bulk herbicide. The
manufacture of the bulk herbicide is a complicated multi-step organic
synthesis which takes place in a petrochemical facility. This process
normally follows a significant number of years and amount of resources
committed to the research and development of the bulk herbicide. Thus,
in addition to the fact that the process of mixing the bulk herbicide
with inert materials or with a wetting agent to place it in an end use
form does not change the essential character of the herbicide, this
process, when compared to the manufacture, research, and testing of the
bulk herbicide, involves significantly less economic outlay. Therefore,
it is the opinion of Customs that the processing of bulk herbicides
into dilute wettable form herbicides does not substantially transform
the bulk herbicides.
Headings 4104-4107 (Leather)
Comment: One comment was received concerning the May 5, 1995,
proposal to amend the Sec. 102.20 interim rule for headings 4104
through 4107 to disallow a change from ``wet blues'' leather to
``finished leather''. This commenter supported the proposed amendment
on the grounds that processing raw hides to wet blues leather is
sufficient to confer origin and that additional processing to make wet
blues into finished leather constitutes finishing operations which are
insufficient to change the country of origin of the leather.
Customs Response: Customs agrees with the comment. For the above
reasons and the reasons cited in the May 5, 1995, notice, the proposed
rule for goods of heading 4104 through 4107 is reflected in Sec. 102.20
as set forth below.
Headings 6401-6405 (Complete Footwear)
Comment: The interim Sec. 102.20 rule for the above goods provides
for a change to headings 6401 through 6405 from any heading outside the
group, except from formed uppers. One comment was received concerning
this rule. This commenter noted, and expressed approval for, the fact
that the above rule is consistent with Customs longstanding application
of the substantial transformation principle to footwear.
Customs Response: Customs agrees that the Sec. 102.20 rule for
these goods is consistent with its interpretation of the substantial
transformation principle. It should be noted that Customs' practice in
this area is also in direct compliance with the decision in Uniroyal,
Inc. v. United States, supra, where the court held that footwear uppers
which were ``lasted'' or permanently molded into the ultimate shape,
form, and size of the complete shoe, were not substantially transformed
by the attachment thereto of an outsole since the upper was the very
``essence'' of the finished shoe. Therefore, with the exception of
footwear with uppers and soles made of wool felt (which are covered by
new Sec. 102.21--see the above discussion regarding rules of origin for
textile and apparel products), the Sec. 102.20 rule for goods of
headings 6401 through 6405 is set forth below without substantive
change.
Headings 7010-7018 (Glass Articles)
Comments: Only one comment was received in response to the May 5,
1995, proposal to amend several of the Sec. 102.20 rules for goods of
the above headings. This comment expressed support for the proposed
amendment to the Sec. 102.20 rules applicable to decorative crystal,
which will now recognize certain prescribed operations performed on
uncut and unpolished glassware blanks as resulting in a change of
origin of the glass blanks.
Customs Response: For the reasons stated in the background
discussion for the proposed amendments, as well as the reasons cited
elsewhere in this document for general changes affecting these rules,
and in consideration of the comment received, the proposed changes to
the Sec. 102.20 rules for goods of headings 7010 through 7018, are
adopted and set forth below without substantive change.
Chapter 72 Note (Cold Rolled, Flat Rolled Steel)
Comments: Three comments were received in response to the July 12,
1995, proposal to amend the Sec. 102.20 rules for Chapter 72 goods by
adding a note that allowed cold rolled, flat rolled steel, which is
produced by reduction of hot rolled flat rolled steel, to be treated as
a good of the country in which the cold reduction occurred. Two
commenters supported the note as proposed. One of these commenters
stated that the proposed note was consistent with Customs' longstanding
position that these cold rolled flat rolled products are substantially
transformed in the country where cold reduction took place. The second
of these commenters noted its support for all of the Chapter 72 and 73
rules, citing its belief that these rules are more transparent and
predictable for determining country of origin. The third commenter
supported the principle reflected in the proposed Chapter 72 note but
also suggested that the scope should not be limited to flat rolled
products but rather should include other products such as pipe that are
subjected to a cold reduction process. This commenter stated that the
rationale for the Chapter 72 note, i.e., that there is a significant
reduction in the thickness of hot rolled, flat rolled, product which
changes the crystalline structure of the steel products by elongating
it, applies to hot extruded tubular products which are subjected to a
cold reduction process.
Customs Response: Customs does not agree with the comment
suggesting that the proposed note be amended to cover additional
products. Customs believes that the cold reduction of hot rolled flat
rolled steel results in a substantial transformation of the hot rolled
flat rolled steel not only because there has been reduction in size but
also because of the changes in use caused by this process.
[[Page 28946]]
Unlike the circumstances relating to the hot extrusions (hollows)
and wire rod, Customs finds that the hot rolled flat rolled steel
product is not necessarily dedicated to becoming cold rolled flat
rolled steel. The cold reduction process results in changing a product
(hot rolled steel) which has versatile uses to one that has limited
uses. For example, in HQ 080277 dated September 21, 1987, in which
Customs ruled that hot rolled steel coil was substantially transformed
when made into cold rolled full hard steel coil as result of a cold
reduction process, Customs noted the fact that each of the two products
was marketable to a distinct consumer group and that thin gauge hot
rolled coil generally could be substituted for cold rolled full hard
steel coil in commercial applications. Thus, hot rolled flat rolled
steel is not dedicated to become cold rolled flat rolled steel before
it can be used for any intended purpose. For example, hot rolled, flat
rolled steel can be used as steel planks, ship hulls and similar
products, or it can be cold rolled into steel sheeting having specific
uses (e.g., automobile steel). For reasons explained more fully below,
Customs does not agree that the same rationale applies to wire and tube
products.
Heading 7210 (Flat Rolled Steel, Coated, Clad or Plated)
Comment: One comment was received regarding the Sec. 102.20 rule
for heading 7210 (flat-rolled iron or steel of 600 mm or more, coated,
clad, or plated), under which a change from headings 7208 through 7212
is not allowed. This commenter proposes that origin be conferred when
flat-rolled steel of heading 7209 is coated, clad, or plated.
Customs Response: Customs disagrees. Consistent with the rationale
set forth in the Superior Wire case discussed in the response to the
next comment, it is the position of Customs that a substantial
transformation does not occur through the coating, cladding or plating
of flat-rolled steel. It is Customs' view that the use and character of
such products are predetermined by the imported steel, and that
coating, cladding, and plating merely constitute finishing steps in the
completion of the product.
Headings 7217 and 7223 (Wire)
Comments: Four comments pertain to the processing of wire rod into
wire. Under the Sec. 102.20 rules, a change is not allowed to heading
7217 (wire of iron or non-alloy steel) from headings 7213 through 7215
(bars and rods of iron or non-alloy steel); nor is a change allowed to
heading 7223 (wire of stainless steel) from heading 7221 or 7222 (bars
and rods of stainless steel).
Each of the four commenters believes that a change should be
allowed when wire rod is converted to wire under certain circumstances.
One commenter believes that the rule should take into account the heat
treatment (annealing) involved in treating stainless steel rod; another
commenter is of the opinion that drawing and annealing the rod should
confer origin if at least a minimum reduction of 75 percent in surface
area occurs; and a third commenter proposes that origin be conferred
when the conversion of wire rod to wire includes the process of
galvanizing. The fourth commenter believes that a change should be
allowed to heading 7217 from headings 7213 through 7215 if there is
either a substantial transformation or a regional value content of not
less than 50 percent of the net cost of the good. A change would not be
allowed if the carbon content of the wire rod is less than a certain
minimum, the reduction in cross-sectional area is less than 75 percent,
and the wire is not further processed by heat treatment or coating.
Customs Response: In Superior Wire v. United States, 11 CIT 608,
669 F. Supp. 472 (CIT 1987), aff'd, 867 F.2d 1409 (Fed. Cir. 1989), the
Court of International Trade held that the drawing of wire rod into
wire through a multi-stage process did not constitute a substantial
transformation of the wire rod, since there was no significant change
in use or character of the imported material. The court noted that
while the wire emerged stronger and more rounded after drawing the wire
rod, its strength characteristic was metallurgically predetermined, and
the chemical content of the rod and the processes used in its
manufacture determined the properties the wire would have after
drawing. Thus, while the wire rod and wire had different names and
identities in the industry, the court found that they were essentially
different stages of the same product.
The Sec. 102.20 rules codify the court's decision in Superior Wire
that a substantial transformation does not occur when wire rod is
converted to wire. While the record in Superior Wire does not indicate
whether annealing also took place, Customs notes that the most
significant operation involved in transforming wire rod to wire is the
drawing process, which reduces the rod in cross-sectional area. It is
Customs opinion, based on the rationale of Superior Wire, that heat
treatment (annealing) and/or galvanizing (which may be performed
subsequent to the drawing process) do not change the use or character
of the wire, which is predetermined by the wire rod. These processes
are merely finishing steps in the processing of the wire rod to wire.
With regard to the fourth commenter's suggestion of the use of a value
added criterion, the Customs responses to previous comments in this
document (e.g. Sec. 102.16, Sec. 102.20 (pharmaceuticals)) are hereby
incorporated by reference.
Subheading 7304.41 (Pipes and Tubes)
Comments: Two comments were received regarding the Sec. 102.20 rule
applicable to seamless tubing and pipe classifiable under subheading
7304.41, HTSUS. The rule for these goods provides for a change to
heading 7301 through 7307 from any other heading, including another
heading within that group. The two commenters oppose this Sec. 102.20
rule. One commenter states that these products are produced by cold
working processes performed on thick-walled hot extrusions known as
hollows. The hollows are subjected to a cold-working process known as
``pilgering'' which employs matched pairs of rotating dies in
conjunction with a mandrel to reduce the diameter and wall thickness.
Drawbenches, another cold-working process, is also used in conjunction
with pilgering equipment to produce the smallest-sized product range.
Other processes, including degreasing, heat treating, straightening,
cutting, deburring, and polishing, are also performed. The commenters
claim that these processes performed on hollows to produce stainless
steel pipe and tube in sizes ranging from \1/4\ inch up to 1\1/2\ inch
in outside diameter result in a substantial transformation of the
hollows.
Customs Response: Customs disagrees. Customs has found the decision
in Superior Wire v. United States, supra, supportive of the conclusion
that tube hollows cold drawn to smaller sizes are not substantially
transformed. See HQ 558825 dated February 9, 1995, and HQ 556932 dated
January 14, 1993. In HQ 556932, only a seven-step process performed on
imported steel rod, consisting of pickling, drawing, threading, die-
forming, threading of bolts and tapping of nuts, heat treatment, and in
some cases, plating, collectively constituted a single substantial
transformation. Accordingly, Customs disagrees that the Sec. 102.20
rule, which disallows a change in origin for hollows subjected to
pilgering, are inconsistent with the court's application of the
substantial transformation test to similar merchandise, e.g., wire rod
to wire. To the extent that there may be
[[Page 28947]]
rulings which indicate that similar processes resulted in a substantial
transformation, these rulings were issued prior to the decision in
Superior Wire.
Subheadings 8470.10-8471.91 (Calculating, ADP Machines (Computers))
A. Comments on Computers in General
For those Sec. 102.20 rules for goods of Chapters 84 and 85, which
generally disallowed tariff changes resulting from a ``simple
assembly'', Customs proposed revisions which clarified that only those
changes from specifically identified tariff provisions will be
disallowed when the production of the good resulted from a ``simple
assembly'' as defined under Sec. 102.1(o). Only those provisions from
which a change in tariff classification indeed can result from simple
assembly are now included in the ``simple assembly'' provisos in these
tariff shift rules. Thus, the proposed rules for subheadings 8470.10
through 8471.91 (which covers ADP machines) was proposed to be revised
to read as follows:
A change to subheading 8470.10 through 8471.91 from any
subheading outside that group, except from heading 8473; or A change
to subheading 8470.10 through 8471.91 from any subheading within
that group or from heading 8473, provided the change is not the
result of a simple assembly.
Three comments were received concerning the Sec. 102.20 rules
applicable to the production of computers from foreign materials. One
commenter claims that, since a change in tariff classification occurs
when a CPU chip is mounted onto a stuffed printed circuit board, a
change of origin should also occur as a result of this operation.
Another commenter states its belief that in order to determine the
origin of a computer not wholly obtained in a country, one must
identify the country in which an identically classified PCA (printed
circuit assembly) underwent a prescribed change in classification and
then assign that origin to the entire computer. Finally, the third
commenter complained that under the Sec. 102.20 rules, the assembly of
a motherboard (single board computer) into a housing would not
represent the requisite change in tariff classification under the
rules.
Customs Response: Customs disagrees with the above comments. As
noted above, many of the tariff changes are precluded because of a
``simple assembly'' of the finished good. Section 102.1(o) defines this
term as ``the fitting together of five or fewer parts all of which are
foreign (excluding fasteners such as screws, bolts, etc.) by bolting,
gluing, soldering, sewing or by other means without more than minor
processing.''
With respect to the comment regarding the mounting of a CPU chip
onto an otherwise stuffed printed circuit board, Customs has ruled that
the simple mounting of a CPU chip (classifiable in heading 8542, HTSUS)
onto a stuffed printed circuit board (classifiable in heading 8473,
HTSUS), which results in a good (a ``motherboard'') classified in
subheading 8470.10 through 8471.91, is not a complex and meaningful
operation which should confer origin. See, HQ 734518 dated June 28,
1993, wherein Customs ruled that the mounting of a CPU chip onto the
motherboard was a simple operation which did not constitute a
substantial transformation. Therefore, if both the CPU chip and the
stuffed printed circuit board are of foreign origin, pursuant to
Sec. 102.1(o), the operation of mounting the CPU chip onto the board is
a simple assembly and the result reached under the Sec. 102.20 rule is
consistent with the Customs position set forth in the cited ruling.
However, if either the CPU chip or the stuffed printed circuit
board is of domestic origin, the operation would not be considered a
simple assembly under Sec. 102.1(o) and, therefore, the motherboard
would meet the tariff shift rule and a change of origin would occur. In
addition, even if there is a ``simple assembly'' and the tariff shift
rule is not met, by operation of the Sec. 102.11 hierarchy, it must be
determined under Sec. 102.11(b) whether one of these parts imparts the
essential character to the finished motherboard. If, as a result of the
consideration of relevant factors set forth in Sec. 102.18(b), it is
determined that one of these parts imparts the essential character to
the good, the origin of that part is the origin of the good. If neither
of these parts imparts the essential character to the good, then
pursuant to Sec. 102.11(d) the origin of the good would be the country
of origin of both parts if they are products of the same country, or
the country in which the motherboard was finally assembled if these
parts have different countries of origin.
Contrary to the general tenor of the comments, Customs believes
that, as compared to Customs current practice and rulings under which
these goods may have multiple countries of origin in many instances,
the part 102 rules for computers are fairly liberal and easily
implemented. Essentially, any change in tariff classification at the
subheading (six-digit) level results in a change of origin, unless the
change is from heading 8473 (parts for computers) or unless the change
is from another subheading within the same group covered by the rule,
in which case the change in tariff classification still could be
allowed so long as the change did not result from a ``simple assembly''
of the finished good.
With respect to the issue of the motherboard, Customs has
consistently held that a completed motherboard imparts the essential
character to a computer and is therefore classified in the same
provision as the computer. The term, ``motherboard'' generally refers
to a single board computer generally missing only the housing, fan, and
power supply. Therefore, Customs would not consider that there has been
a substantial transformation, i.e., a change in name, character or use
as a result of incorporating a motherboard into a housing. Therefore,
since the motherboard is not classified under heading 8473 or outside
the subheading covering the computer to which it relates, but instead
is classified as the computer itself, any foreign motherboard will not
meet the Sec. 102.20 rule, even if the finished computer did not result
from a ``simple assembly''. Customs believes this interpretation is
entirely consistent with Customs' longstanding position that the
motherboard, when assembled into a housing to make the finished
computer, does not undergo a substantial transformation. See HQ 734093
dated August 8, 1991, where Customs ruled for country of origin marking
purposes that the final assembly of motherboards (i.e., boards that
already included the CPU chips) with other components consisting
primarily of connectors did not result in a substantial transformation
of the motherboard.
B. Comment on Subheading 8470.50 (Point-of-Sale Terminals)
One comment was received concerning the specific rule applicable to
point-of-sale terminals which are classifiable in subheading 8470.50,
HTSUS. This commenter states that these goods rarely consist of more
than five parts (a logic unit, a keyboard, a printer unit, a display
stand and a cash drawer) and thus expresses concern about the
difficulty in meeting the Sec. 102.20 rule.
Customs Response: Customs disagrees with this comment, which was
not supported by specific facts. Customs believes it is unlikely that
the assembly of a point-of-sale terminal would include five or fewer
parts. For instance, if the assembler adds a power cord or power supply
to the unit as described by the commenter, and all of these parts
[[Page 28948]]
were assembled in one country, there would have been an assembly of
more than five parts.
C. Comment on Processor Units of Subheadings 8471.20 and 8471.91
One comment was received concerning the application of the
Sec. 102.20 rule for goods of the above subheading. This commenter
expressed concern that the incorporation of a hard disk drive and a
floppy disk drive of subheading 8471.93, or a display unit of
subheading 8471.92, into processor units of subheadings 8471.20 and
8471.91 would not be an acceptable change in tariff classification
under Sec. 102.20.
Customs Response: Customs disagrees. One of the Sec. 102.20 rules
for processor units of subheadings 8471.29 and 8471.91 expressly allows
a change in tariff classification from hard or floppy disk drives of
subheading 8471.93 to display units of subheading 8471.92, since these
latter subheadings are outside the group to which the tariff shift rule
applies (that is, subheadings 8470.10 through 8471.91). Therefore,
incorporating disk drives and display units into ADP processor units
would result in a tariff shift, thereby conferring origin. This tariff
shift rule is consistent with Customs' current position. See HQ 735608
dated April 21, 1995, wherein Customs held that foreign components,
consisting of case assemblies, partially completed motherboards (i.e.,
without the CPU and, in some cases, BIOS), hard disk drives and slot
boards, which were further processed and assembled into desktop
computers in the United States were substantially transformed as a
result of the U.S. operations.
Subheadings 8471.92-8472.90 (Other Machines for Transcribing or
Processing Coded Data or Other Office Machines)
A. Comment on Subheading 8471.92 (Printers)
The Sec. 102.20 rules for goods of subheadings 8471.92 through
8472.90 were proposed to be revised in the May 5, 1995, notice of
proposed rulemaking to read as follows:
A change to subheading 8471.92 through 8472.90 from any
subheading outside that group, except heading 8473; or A change to
subheading 8471.92 through 8472.90 from any subheading within that
group or from heading 8473, provided the change is not the result of
a simple assembly.
One comment was received on the Sec. 102.20 rules as they relate to
printers. This commenter claims that a substantial transformation
occurs in the country where any one of the media transport, control or
print mechanisms are combined with the others, and with other parts, to
make a functional printer. The concerns expressed by this commenter are
linked to the fact that as a result of the application of GRI 2(a), the
tariff classification for printers, subheading 8471.92, includes
unassembled printers as well as printers missing one of the components
(i.e., media transport, control or print mechanisms). Thus, if the
components at issue are classified in the same provision as the
finished printer as a result of GRI 2(a), the Sec. 102.20 rule, which
requires a change to the subheading from another subheading outside the
group, or a subheading change within the described group if the change
did not result from a simple assembly, will not be met.
Customs Response: Customs believes that the result described by
this commenter properly reflects the application of the substantial
transformation principle. With the exception of the rule for television
receivers (subheadings 8528.10 through 8528.20) and video display units
(computer monitors) of subheading 8471.92) discussed later in this
document, Customs believes that even when there are two or more
materials that are classified in a provision from which a change in
tariff classification is not allowed under the Sec. 102.20 rule, if one
material (e.g., a printer subassembly) is classified in the same HTSUS
provision as the finished good, such material invariably will
constitute pursuant to Sec. 102.11(b) the ``single material'' that
``imparts the essential character'' to the good, and the origin of that
material will be the origin of the finished good.
On the other hand, if the printer is imported completely
unassembled, but the Sec. 102.20 rule will not have been met because of
the classification of the unassembled printer as the finished good,
country of origin may not be able to be determined under Sec. 102.11(b)
if no single one of the unassembled components, alone, imparts the
essential character to the printer. In such instance, if there are more
than five parts, or if some of the parts are of domestic origin,
pursuant to Sec. 102.11(d), the country of origin of the printer could
be the country of assembly. This possibility further supports the
opinion of Customs that the Sec. 102.20 rules, coupled with the
operation of the Sec. 102.11 hierarchy, do not depart from Customs'
current application of the substantial transformation principle.
B. Comments on Subheading 8471.93 (Storage Devices)
The Sec. 102.20 rule for these goods is the same rule applicable to
the printers discussed in the previous comment analysis. The tariff
classification for ADP storage units will include units without read-
write units assembled therein and read-write units separately entered.
Similar to the printer components discussed above, these components are
classified pursuant to GRI 2(a) as unassembled or incomplete storage
units because they have the essential character of the finished good.
Therefore, like the printers components, these units do not meet the
Sec. 102.20 tariff shift rule for storage devices. Two comments were
received concerning the Sec. 102.20 rule for these goods. Both
commenters expressed concern that the assembly of a storage unit into a
rack containing other storage units would not be considered a
substantial transformation and that when multiple storage units are
rack mounted (storage array), they would retain their original country
of origin.
Customs Response: The response to the comment concerning printers
is hereby incorporated by reference since the analysis set forth
therein is equally applicable to the storage units described by these
commenters. However, Customs agrees with the present commenter's
observation that, in this case, if the Sec. 102.20 rule is not met, the
country of origin will be the country or countries of origin of the
storage units. The storage unit(s), regardless of their number, will be
considered as the ``single material that imparts the essential
character'' to the good, and pursuant to Sec. 102.11(b), the country or
countries of origin of the storage units will be the country or
countries of origin of the rack mounted storage units. Customs believes
this outcome is entirely consistent with that reached under the current
application of the substantial transformation principle.
C. Comment on Subheading 8471.93 (Control/adapter Units)
One comment was received with respect to the Sec. 102.20 rule for
these goods. This commenter states that if control or adapter units
were to be assembled in the United States, they could be comprised of
other ADP units (disk drives and power supplies) which would not
undergo a tariff shift.
Customs Response: Customs disagrees with this observation and
believes that the rule in question appropriately reflects the
substantial transformation principle. The disk drive and the power
supply do not impart the essential
[[Page 28949]]
character to the finished control or adapter unit. In fact, a control
or adapter unit that is imported without the disk drive and power
supply would be classifiable as an unfinished control or adapter unit
as a result of the application of GRI 2(a). Thus, the fact that there
will be no change in tariff classification is consistent with the view
of Customs that the subsequent assembly of these units with the disk
drive and power supply does not substantially transform the imported
units. See the above comment analysis regarding printers. Contrary to
the commenter's claim, this result does not represent a departure from
current practice, and there are no rulings to support the commenter's
position.
Heading 8473 (Parts and Accessories of Machines of Headings 8469-8472)
Comments: The Sec. 102.20 rule for goods of heading 8473 proposed
in the May 5, 1995, notice of proposed rulemaking provides for a tariff
shift to heading 8473 ``from any other heading, except when the change
is from heading 8414, 8501, 8504, 8534, 8541, or 8542 as a result of a
simple assembly.'' Three comments were received concerning this
proposed rule. One commenter stated its view that the process of
fabricating key components should not be a necessary condition for a
final product to obtain origin status. Another commenter claims that
any change from heading 8414, 8501, 8504, 8534, 8541, or 8542 to
heading 8473 should be considered a substantial transformation. This
commenter cites example 3 in 19 CFR 10.14(b) in which a complex and
meaningful production process of a circuit board is described. Finally,
the third commenter seeks to have the rule further revised to allow the
programming of goods of heading 8473 to result in a change of origin.
As support for this position, this commentor cites HQ 733085 dated July
13, 1990, as clarified and affirmed by HQ 558868 dated February 23,
1995, wherein Customs held that the U.S. programming of random access
memory (``RAM'') chips in access security cards constituted a
substantial transformation of the imported card.
Customs Response: Customs strongly disagrees with the comments
advocating that the Sec. 102.20 rule should allow simple assemblies of
key components to confer origin. It has been long established as a
principle, by both Customs and the courts, that key components can
impart the essential character to the good and consequently will not be
substantially transformed by subsequent processing and assembly
operations. See Uniroyal, Inc. v. United States, supra. The operations
described in the example cited in 19 CFR 10.14(b) clearly do not
constitute a ``simple assembly'' and therefore would meet the criteria
set forth in the proposed Sec. 102.20 rule. Thus, the proposed rule is
consistent with the example cited by the commenter. On the other hand,
since a good of heading 8473 can be created by the mere joining of two
items, Customs believes the Sec. 102.20 rule properly disallows changes
from key components of goods classified under heading 8473 when the
change in tariff classification results from a ``simple assembly''.
This result is consistent with the position of Customs and the courts
that not all assembly and testing operations result in a substantial
transformation of the articles subjected to these operations.
Customs also does not agree with the comment that the programming
of goods classifiable in heading 8473 should be allowed to result in a
change in origin such as is allowed for goods classified in headings
8541 and 8542. Articles that are classified in heading 8473 consist of
a combination of goods that are more than a single integrated circuit
of headings 8541 and 8542 and are already identifiable as computer
parts and accessories. In order for a good to be classifiable as a
computer part or accessory of heading 8473, it usually consists of a
significant number of different types of electronic components. As
such, they have a substantial identity as computer parts and
accessories which is distinct from any individual integrated circuits
of which they may be composed. Therefore, any programming of the
individual chips resident on a printed circuit board that already has
the identity of a heading 8473 ADP part or accessory in no way changes
the name, character or use of that computer part or accessory. On the
other hand, articles classified in headings 8541 and 8542 are utilized
in any number of different goods which are classified in numerous other
provisions. Customs recently ruled in HQ 958314, issued November 29,
1995, that the good which was the subject of HQ 733085 and HQ 558868
cited by the third commenter is classifiable, both before and after the
programming, in heading 8542. The programming of goods of headings 8541
and 8542 changes their essential character since the programming
dedicates the chips to certain applications and the Sec. 102.20 rule
for these goods expressly codifies this position. Customs believes its
views are consistent with the court's decision in Data General
Corporation v. United States, 4 CIT 182 (1982). Therefore, the May 5,
1995, proposed revision of the Sec. 102.20 rule for these goods of
heading 8473 should be adopted.
Subheadings 8482.10-8482.80 (Bearings)
Comments: The Sec. 102.20 rule set forth in the May 5, 1995, notice
of proposed rulemaking for subheadings 8482.10 through 8482.80 provides
as follows:
A change to subheading 8482.10 through 8482.80 from any other
heading; or
A change to subheading 8482.10 through 8482.80 from any other
subheading, including another subheading within that group, except
from inner or outer races or rings of subheading 8482.99.
One comment was received on the proposed rule. This commentor
claims that the processes of grinding, polishing and heat treating of
rings and races should confer origin.
Customs Response: Customs disagrees. It remains the position of
Customs that these types of operations are merely finishing operations
which do not confer origin. None of these operations changes the
essential character of the article which is processed. The name,
character and use of the article remain the same after these operations
are performed. See National Hand Tool Corp. v. United States, supra,
wherein the court held that operations such as grinding, polishing and
heat treating are merely finishing operations which do not constitute a
substantial transformation. Therefore, the revision of the Sec. 102.20
rule for these goods should be adopted as proposed.
Subheading 8518.21-8518.22 (Loudspeakers)
Comment: One commenter alleges that the Sec. 102.20 rule for
subheadings 8518.21 and 8518.22, which requires a change from any other
heading, is inconsistent with the substantial transformation test. This
commenter states that consumer speakers mounted in an enclosure,
classifiable under either subheading 8518.21 or subheading 8518.22, can
consist of a tweeter, a mid-range, a woofer, or any combination of the
these three loudspeakers, while the speaker drive units (i.e.,
loudspeakers), which are not mounted in an enclosure and which are used
to manufacture complete speaker systems, are not consumer products and
are classifiable under subheading 8518.29, HTSUS. Therefore, it is
claimed that the Sec. 102.20 rule is contrary to the substantial
transformation test in that it does not consider the intricacies of the
crossover network, the circuitry usually necessary to deliver each band
of signals to the correct loudspeaker when a speaker
[[Page 28950]]
system contains a tweeter, a mid-range, and a woofer.
Customs Response: Customs disagrees. In HQ 556699 dated December
28, 1992, Customs held that the manufacture of completed speakers
consisting of a woofer, tweeter, midrange cone drivers, crossover
networks, and particle board from which the speaker housing was
constructed were considered ``products of'' Mexico for purposes of the
GSP, but only the cost or value of the particle board could be included
in the 35 percent value-content calculation. In that ruling Customs
also found that the enclosure of a stereo chassis (radio receiver, dual
cassette deck) with a housing, and with the addition of speakers, did
not serve to change the identity of the stereo chassis and did not
transform the stereo chassis into a new and different article of
commerce because the stereo chassis was the essence of the stereo
system.
The interim Sec. 102.20 rule for these goods provides for a change
in heading. In HQ 559139 dated August 31, 1995, Customs considered the
country of origin of a loudspeaker system classifiable under subheading
8518.22, HTSUS, containing a woofer, a tweeter, and a crossover network
under the interim Part 102 regulations. Applying the hierarchy set
forth in Sec. 102.11, Customs determined that since the woofer and
tweeter installed into the loudspeaker system were classifiable under
the same heading, namely heading 8518, HTSUS, the Sec. 102.20 rule was
not met and Sec. 102.11(b) was then applicable. Since both the woofer
and the tweeter were equally important in producing the sound
frequencies of the system, neither component imparted the essential
character to the loudspeaker system for purposes of determining its
country of origin under Sec. 102.11(b). Thus, the country of origin of
the loudspeaker system was finally determined, pursuant to
Sec. 102.11(d), to be the last country in which the loudspeaker system
underwent production, other than by simple assembly or minor
processing, which is consistent with the determination in HQ 556699.
In HQ 559139 Customs also determined, under the interim part 102
rules, the country of origin of loudspeaker systems containing only a
woofer. Pursuant to Sec. 102.11(b) of the interim regulations, the
country of origin was determined to be the country of origin of the
woofer and not the country where the loudspeaker system was
manufactured. While Customs has not issued a ruling regarding the
origin of a loudspeaker containing only one speaker drive unit outside
of the context of the interim part 102 rules, it is the position of
Customs that the cited ruling under the interim Part 102 rules reflects
a proper application of the substantial transformation test. Just as
the stereo chassis in HQ 556699 was considered the very essence of the
stereo system, the woofer in HQ 559139 was the single material
imparting the essential character of the loudspeaker and no crossover
network was required to produce the desired sound. Therefore, it is the
opinion of Customs that the Part 102 rules codify the Customs
interpretation of the substantial transformation principle with respect
to loudspeakers classifiable in subheadings 8518.21 and 8518.22, HTSUS.
Subheadings 8528.10-8528.20 (Televisions) and Subheading 8471.92
(Display Units)
A. Comments on Television Receivers
The May 5, 1995, notice of proposed rulemaking proposed to amend
the Sec. 102.20 rule for the above goods to read as follows:
A change to subheading 8528.10 through 8528.20 from any other
subheading, including another subheading within that group, except
from subheading 8540.11 through 8540.12.
Two comments were received in response to the above proposed text.
The commenters state that the drafters of the HTSUS clearly recognized
the overwhelming importance of the television chassis to the
functioning of a television by creating 8-digit breakouts for
incomplete or unfinished television receivers (subheadings 8528.10.04
and 8528.10.08). These subheadings cover, inter alia, ``assemblies for
television receivers consisting of all the parts specified in
additional U.S. Note 10 to this chapter plus a power supply'' (which
collectively are known in the industry as ``chassis'') which thus fall
under the same 6-digit subheading (8528.10) as the television receiver
itself. The commenters further state that by creating these subheadings
under the 6-digit subheading for television receivers, the HTSUS
drafters recognized that the function of the chassis is so important
that it must be classified as an incomplete or unfinished television
receiver (and not merely as a part thereof). (In the background
discussion of the May 5, 1995, proposed amendment, Customs stated that
``the television tube may determine origin for some television sets.'')
The commenters state that since the chassis is considered to be an
incomplete or unfinished television receiver, without the picture tube,
it would be inconsistent for Customs to conclude that the picture tube
constitutes the single material imparting the essential character to
the television receiver.
Customs Response: After careful consideration of the comments, it
is Customs' view that, for purposes of determining the country of
origin of a finished television receiver, neither the picture tube nor
the television chassis independently imparts the essential character to
the television receiver. Customs previously has recognized the
substantial transformation of both a foreign chassis and a foreign tube
when assembled with other components to make a finished television
receiver. In HQ 711967 dated March 17, 1980, Customs found that U.S.-
origin picture tubes, cabinets, and wiring were substantially
transformed in Mexico when they were assembled in Mexico with Korean
origin printed circuit boards, power transformers, yokes and tuners,
since the operations performed in Mexico resulted in the foreign
components becoming integral parts of a new article (the television
receiver). On the other hand, in HQ 732170 dated January 5, 1990,
Customs ruled that the assembly in the United States of a foreign
chassis with a U.S. picture tube assembly and remote control unit
resulted in a substantial transformation of the imported chassis and
other components. As the above rulings illustrate, Customs has
considered both the chassis and the tube assembly as integral parts of
a finished television receiver. In neither case did a foreign chassis
or a foreign tube determine the country of origin of the completely
assembled television receiver. It is for the purpose of maintaining
this result that the Sec. 102.20 rule will not be satisfied whenever
either the tube or the chassis is of foreign origin. As illustrated
below, however, Customs believes that a proper application of the
Sec. 102.11 hierarchy will yield a result that is entirely consistent
with the results reached in the above cited Customs rulings.
In applying the proposed Sec. 102.20 rule for television receivers,
Customs finds that neither the chassis nor the picture tube undergoes
the requisite tariff shift. Therefore, it is necessary to proceed to
Sec. 102.11(b) to see if origin of the television receiver can be
determined under that provision. Section 102.11(b) states that where
the country of origin cannot be determined under paragraph (a), the
country of origin of the good is the country or countries of origin of
the ``single material'' that imparts the essential character to the
good. Customs does not
[[Page 28951]]
agree with the commenters' suggestion that the fact that the chassis is
classified in the same 6-digit HTSUS subheading as the television
receiver should dictate the conclusion that the chassis is the ``single
material'' that imparts the essential character to the television.
Based upon consideration of the factors cited in Sec. 102.18(b),
Customs would conclude that for purposes of determining the country of
origin of a television under Sec. 102.11(b), neither the picture tube
assembly nor the television chassis independently imparts the essential
character to this good.
Section 102.11(c) also will not be applicable since the completed
television receiver is not classified under the HTSUS as a ``set'',
``mixture'', or ``composite good''. Thus, the country of origin of the
television receiver must be determined under Sec. 102.11(d)(1). Under
Sec. 102.11(d), unless the finished television receiver is produced as
a result of a ``simple assembly'' (as defined in Sec. 102.1(o)) of the
tube assembly, chassis, and cabinet which are all goods of the same
country, the country of origin of the finished television receiver will
be the country in which it is finally assembled.
B. Comments on Video Display Units (Computer Monitors) of Subheading
8471.92:
One comment was received concerning the proposed Sec. 102.20 rules
for display units classified in subheading 8571.92 (the text of the
proposed rules is set forth in the above discussion of printers of
subheading 8471.93). This commenter expressed concern that if a power
supply and a cathode ray tube (CRT) are of foreign origin but all other
components are domestic, the Sec. 102.20 rule will not be satisfied.
Customs Response: If the CRT is imported separately it will be
classified in heading 8540 and thus the proposed Sec. 102.20 rule for
display units will be met under the facts described by the commenter.
Therefore, Customs assumes that this commenter's primary concern stems
from the fact that a CRT-deflection yoke subassembly is classified in
subheading 8471.92 as an unfinished display unit, and the subsequent
combining of this subassembly with another part, such as a power
supply, will not meet the requisite change in tariff classification
rule.
Inasmuch as Customs traditionally has treated televisions and
computer monitors as comparable articles for purposes of rulings
regarding substantial transformation of televisions, such rulings are
equally relevant for resolving substantial transformation issues for
computer monitors; accordingly, the above comment response regarding
television receivers is relevant to the Sec. 102.20 rules for display
units. In HQ 734966 dated October 18, 1993, Customs noted prior rulings
on the substantial transformation of television tubes and chassis and
ruled that the assembly in the United States of a foreign integral tube
component (CRT and mounted yoke), printed circuit board, video board,
cabinet backs and fronts, cables along with U.S. electrical connectors,
wires, etc., to create the finished video display terminals resulted in
a substantial transformation of the foreign components.
Consistent with the view expressed above with regard to television
chassis which are classified in the same provision as the finished
television receivers, Customs concludes that the fact that the CRT-yoke
subassembly is classified in the same provision as the finished display
unit does not dictate the conclusion that this component, alone,
imparts the essential character to the video display unit for origin
purposes. The integral role played by parts (for example, a subassembly
consisting of the printed circuit board, video board, cabinet backs and
fronts, electrical connectors, etc.) classified in heading 8473 (a
provision excluded under the specific tariff shift rule) in the
function of a video display unit is well established. Thus, in cases
involving facts similar to those presented in HQ 734966, origin will
not be determined on the basis of the CRT-yoke subassembly under
Sec. 102.11(b), and since such facts would not involve a ``simple
assembly'' as defined in Sec. 102.1(o), Customs believes the same
origin result that was reached in HQ 734966 can be reached under
Sec. 102.11(d).
Heading 9001 (Spectacle Lenses, Optical Elements)
Comment: One comment was received regarding the Sec. 102.20 rules
applicable to spectacle lens and other optical elements made from lens
blanks of Chapter 70. The relevant Sec. 102.20 rules provide as
follows:
A change to subheading 9001.40 through 9001.90 from any other
subheading, including another subheading within that group, except
from lens blanks of heading 7014 or subheading 7015.10.
A change to subheading 9002.11 through 9002.90 from any other
subheading, including another subheading within that group, except
from subheading 9001.90 or lens blanks of heading 7014.
This commenter claims that since grinding and polishing lens blanks
(which are classified in heading 7014) to produce unmounted lenses
(which are classified in heading 9001) results in a change in tariff
classification, it should be recognized as a substantial transformation
under the Sec. 102.20 rules for unmounted lenses.
Customs Response: Customs disagrees. As Customs has stated
consistently in connection with the proposed uniform origin rule
concept, the Part 102 rules are intended to codify the interpretation
of the substantial transformation principle by Customs and the courts,
rather than to create a new standard for determining origin. As has
been recognized by the courts, the fact that certain operations may or
may not result in a change in tariff classification is not always
dispositive of the issue of substantial transformation. See Superior
Wire v. United States, supra. Thus, Customs has endeavored to develop a
hierarchy for determining country of origin which allows certain tariff
classification changes to result in origin changes, while disallowing
others which yield results that are inconsistent with the substantial
transformation principle as interpreted by Customs and the courts.
With regard to the issue raised by this commenter, in HQ 555923
dated June 17, 1991, Customs ruled that the further grinding and
polishing of lens blanks into finished lenses did not result in a
``double substantial transformation'' of the raw materials, which
consisted of cylindrical rods of base metals, specialty glasses, and
sheets or rods of dielectrics, for purposes of the value-content
requirement under the Generalized System of Preferences. This ruling
was affirmed upon reconsideration in HQ 556360 dated July 7, 1992,
where Customs ruled that the raw materials used to make the lens blanks
did not undergo a second substantial transformation as a result of the
further operations to make polished lenses. (Of note is the fact that
Customs has applied, consistent with the court cases in this area, a
more liberal application of the substantial transformation standard for
purposes of the second substantial transformation required to receive
duty preferences.) In a more recent internal advice opinion relating to
an investigation, Customs again took the position that the processing
of foreign lens blanks into polished unmounted lenses did not result in
a substantial transformation of the lens blanks since, once the lens
blanks were formed into the configuration of the lens, they had a
predetermined character and use as a lens and could
[[Page 28952]]
not be used thereafter for other purposes. Customs believes that the
application of the substantial transformation principle in the above
cases is supported by the court decisions in Superior Wire v. United
States, supra, and National Hand Tool Corp. v. United States, supra.
Thus, the Sec. 102.20 rules for these heading 9001 goods properly
disallows the change in tariff classification from lens blanks. As a
result of the operation of the Sec. 102.11 hierarchy, the country of
origin of unmounted lenses of heading 9001 made from foreign lens
blanks of heading 7014 or subheading 7015.90 will be determined to be
the country of origin of the lens blank pursuant to Sec. 102.11(b).
Subheadings 9003.11-9003.19 (Eyeglass Frames)
Comment: One comment was received concerning the Sec. 102.20 rules
for the above goods. The rules pertaining to subheadings 9003.11
through 9003.10 provide as follows:
A change to subheading 9003.11 through 9003.19 from any other
heading; or
A change to subheading 9003.11 through 9003.19 from any other
subheading, including another subheading within that group, except
from subheading 9003.90, unless the temples or fronts are
domestically produced.
The commenter claims that the above rules are inconsistent with the
country of origin rules presently applied by Customs. The commenter
states that under Customs' current practice, it has consistently and
uniformly been recognized that unfinished and unusable eyeglass temples
and fronts manufactured in Country A, which are exported to Country B
for further processing and finishing operations, are subjected to a
substantial transformation and thus qualify as products of Country B
for country of origin marking purposes.
Customs Response: Customs recognizes that its position on
substantial transformation of eyeglass frames has not been consistent
over the years. In HQ 709266 dated July 11, 1978 Customs ruled that the
assembly of eyeglass frames did not constitute a substantial
transformation. In C.S.D. 80-43, dated July 17, 1979, however, Customs
ruled that eyeglass fronts and temples that were subjected to further
processing and assembly were substantially transformed. In HQ 728504
dated October 15, 1985, Customs again reverted to the conclusion that
the assembly of imported eyeglass fronts and temples did not result in
a substantial transformation of those parts. The latter position was
again taken in HQ 734663 dated September 4, 1992, wherein Customs ruled
that fronts and temples, which were imported into the United States in
partially finished conditions from various suppliers worldwide and
which were colored and assembled together in the United States along
with other minor parts, were not substantially transformed in the
United States. Subsequently, in HQ 734771 dated December 17, 1992,
Customs ruled that fronts and temples, which were further machined,
trimmed, assembled and polished, were substantially transformed.
Contrary to the commenter's claim, Customs has not recognized all
finishing and assembly of fronts and temples into eyeglass frames as
resulting in a substantial transformation of those parts. The above
rulings, however, illustrate why both Customs and the trade community
need more transparency and predictability in origin determinations.
Customs believes that the proposed Sec. 102.20 rules for eyeglass
frames and the remaining rules in the Sec. 102.11 hierarchy achieve
this goal, while remaining faithful to the substantial transformation
principle. The tariff shift rules in question still allow a change from
fronts and temples to finished frames, provided that either the temples
or fronts are domestic materials, i.e., they are goods of the country
of assembly. In the absence of such a limitation, a change of origin
could result from the simple combining of two foreign parts (fronts and
temples), a result which neither Customs nor the courts have allowed
under the application of the substantial transformation principle.
If the country of origin is not determined under Sec. 102.11(a)(3)
(that is, by meeting the criteria in the Sec. 102.20 rules),
Sec. 102.11(b) of the hierarchy would next apply. However, since both
the fronts and temples are important components of eyeglass frames, it
would be difficult to conclude that either the fronts or the temples,
alone, impart the essential character to the finished frames. Thus, it
would be highly unlikely that country of origin could be determined
pursuant to Sec. 102.11(b). Accordingly, the country of origin of the
eyeglass frame most probably would have to be determined under
Sec. 102.11(d). If the good was not produced as a result of a ``simple
assembly'' (as defined in Sec. 102.1(o)) of fronts and temples from the
same country, the country in which the eyeglass frames were assembled
would be the country of origin under Sec. 102.20(d). If there was a
``simple assembly'' of fronts and temples of the same country of
origin, then the country of origin of those parts would be the country
of origin of the eyeglass frames under Sec. 102.11(d). Customs believes
the foregoing demonstrates that the application of the Sec. 102.11
hierarchy will result in origin determinations that are not only
consistent with Customs' past practice but also far more transparent
and predictable.
Subheadings 9018.31-9019.90 (Surgical Instruments)
Comment: The Sec. 102.20 rules applicable to the above goods
basically require a change from any other subheading, except from
certain provisions that are not relevant to the one comment submitted
regarding these goods. A commenter claims that surgical instruments
often are made from steel forgings produced in one country (e.g., the
United States or Germany) and further processed by machining operations
in a second country (e.g., Pakistan, Hungary, Russia). Both the
forgings and the machined surgical instruments are classified in
subheading 9018.90 as other medical instruments. The commenter claims
that on several occasions, Customs has ruled that the machining of a
steel forging substantially transforms the forging into a surgical
instrument and cites C.S.D. 80-15 of June 25, 1979, HQ 553197 dated
February 11, 1985, and C.S.D. 90-53 of February 12, 1990, as support
for his position. The commenter claims that the Sec. 102.20 rules
should codify these rulings.
Customs Response: Customs disagrees. The Court of International
Trade recently considered whether the processing of forgings classified
in the same provision as the finished good resulted in a substantial
transformation in National Hand Tool Corp. v. United States, supra, a
country of origin marking case. At issue in National Hand Tool was
whether certain imported hand tool components processed in the United
States underwent a substantial transformation. The components were
either cold-formed or hot-forged into their final shape in Taiwan
(except the speeder handle, which was bent to shape in the United
States), while others underwent heat treatment in Taiwan. In holding
that there was no substantial transformation of the imported forgings,
the court found that the name of each article as imported was the same
as that of the completed tool, that the character of the articles
remained unchanged after the operations, and that the use of the
imported articles was predetermined at the time of importation. Customs
is now of the opinion that steel forgings subjected to processes
similar to those considered in National Hand Tool also
[[Page 28953]]
do not undergo a substantial transformation, because such processing
does not result in a change in the name, character, and use of the
imported steel forgings. See HQ 558747 dated January 20, 1995. The Part
102 rules codify Customs current position which applies the rationale
of National Hand Tool.
Assuming arguendo that two or more imported forgings are classified
in subheadings 9018.31 through 9019.90 as parts or accessories of
surgical instruments, the Sec. 102.20 rule will not be met when the
finished surgical instruments are produced. The next step is to go to
Sec. 102.11(b) and determine whether a single imported component
imparts the essential character to the surgical instruments. Since the
forgings are classified in provisions from which a change is not
allowed under the applicable Sec. 102.20 rule, pursuant to
Sec. 102.18(b) these are the parts considered for purposes of
determining if a single material imparts the essential character to the
finished good. Depending upon the type of surgical instrument at issue,
a single steel forging could constitute the single material that
imparts the essential character to the surgical instrument. In such
instances, under Sec. 102.11(b), the country of origin would be the
country in which that steel forging is produced. This result would be
entirely consistent with the position taken by the court in the
National Hand Tool case.
Headings 9101-9110 (Watches and Watch Movements)
Comments: Customs proposed to amend the Sec. 102.20 rules for
clocks and watches and for complete and assembled movements by adding
in each case a second rule to allow changes from complete movements,
unassembled (movement sets), of subheading 9110.11 or 9110.90, or from
rough movements of subheading 9110.19 or 9110.90. Customs also proposed
to amend the rules applicable to heading 9110 (relating to watch and
clock movements, complete and unassembled or partly assembled,
incomplete movements, and rough movements) by deleting the alternative
rule which allowed a change from subheading 9114.90 ``if there had been
a substantial transformation.''
Two comments were received concerning the above proposals. Both
commenters generally agree with the proposed amendments. One commenter
agrees with Customs position that a change should not be allowed from
an incomplete watch or clock movement, assembled, to a complete
movement, but only to the extent that such items are so close to being
complete movements that the final manufacturing steps needed to
complete the movements are insignificant. The other commenter questions
why Customs did not also propose to allow a change to headings 9101
through 9109 from incomplete watch or clock movements, assembled, of
subheading 9110.12. This commenter states that from the producer's
standpoint, the manufacturing operations necessary to produce a
finished movement from either an incomplete movement or a rough
movement are significant.
With regard to the Sec. 102.20 rule for heading 9110, one of the
commenters is of the opinion that the rule should allow a change to
this heading from any other heading or subheading, including subheading
9114.90. The other commenter, however, agrees with Customs' ``apparent
analysis'' that little or no manufacturing may be involved when, for
example, a movement set is put together from subheading 9114.90
assemblies and subassemblies.
Customs Response: Customs continues to believe that a change in
tariff classification should not be allowed from subheading 9110.12 to
headings 9101 through 9109 because an incomplete movement may be
essentially a movement and, therefore, allowing such a change would be
inconsistent with Customs' longstanding interpretation of the
substantial transformation principle. Customs also notes that, as
stated in the May 5, 1995, notice of proposed rulemaking, the proposal
to exclude the alternative rule for heading 9110 is necessary to avoid
redundancy. Customs believes that if a required change in tariff
classification does not occur under Sec. 102.20, when in fact there has
been a substantial transformation of the foreign material at issue, a
substantial transformation result will still be reached under the
Sec. 102.11 rules.
As noted in the May 5, 1995, notice of proposed rulemaking and
elsewhere in this document, the general rules for determining the
country of origin of a good in Secs. 102.11 (a) through (d) are applied
in a hierarchal and sequential manner. Thus, although a prescribed
change in tariff classification may not occur for purposes of
determining origin under Secs. 102.11(a)(3) and 102.20, the country of
origin of a movement made from an incomplete movement of subheading
9110.12 or a part of subheading 9114.90 will nevertheless be determined
once the appropriate rule in the Sec. 102.11 hierarchy is applied.
Depending upon several factors, the foreign material classified in
subheading 9110.12 or 9114.90 may constitute the single material that
imparts the essential character to the complete movement for purposes
of determining the country of origin under Sec. 102.11(b). On the other
hand, if there are several components properly being considered under
Secs. 102.11(b) and 102.18(b), and if no single component imparts the
essential character to the complete movement, then the country of
origin will be determined to be the country in which the movement was
produced (provided that such production was not the result of a
``simple assembly'' of parts from the same country).
Subheading 9506.31 (Golf Clubs)
Comment: The Sec. 102.20 rule for golf clubs provides for a change
to subheading 9506.31 (complete golf clubs) from any other subheading,
except from subheading 9506.39 (parts of golf clubs). One comment was
received concerning this rule. A commenter states that it has been
Customs' longstanding position that the process of joining the
essential component parts--heads, shafts and grips--into completed golf
clubs constitutes a substantial transformation and, therefore, the
country where this process occurs is the country of origin of the golf
clubs. As support, this commenter cites several Customs rulings (HQ
724901 dated April 9, 1984, HQ 728213 dated July 3, 1985, HQ 733185
dated April 11, 1990, HQ 733151 dated September 11, 1990, HQ 734136
dated June 17, 1991, and HQ 735125 dated November 17, 1993) in which
Customs ruled that the assembly of either a foreign head or shaft with
a domestic head or shaft and a domestic grip, or the use of foreign
grips in the manufacture of completed golf clubs in the United States,
resulted in a substantial transformation of the foreign head or shaft
or grip so that the country of origin of the completed golf club was
the United States where the assembly took place.
Customs Response: Contrary to the commenter's suggestion, Customs
has not taken the general position that the country of origin of a golf
club is the country in which it is finally assembled. In fact, Customs
has never ruled on the question of whether the assembly in the United
States of a foreign head and shaft with either a foreign or domestic
grip into a completed club results in a substantial transformation of
the imported components, thereby making the United States the country
of origin of the completed club. Customs, however, believes that the
Sec. 102.20 rule for golf clubs allows for the substantial
transformation principle to be applied in a manner consistent with the
approach taken in the rulings cited by
[[Page 28954]]
the commenter. Applying the Sec. 102.20 rule to determine whether the
foreign components change their origin as a result of an assembly
operation, Customs finds no tariff shift for the imported components.
However, if the hierarchal rules of Sec. 102.11 are properly applied to
the circumstances in the above-cited rulings (e.g., assembly of a golf
club using a foreign head and a domestic shaft and grip) Customs finds
that the same origin result can be reached under the Sec. 102.11
hierarchy.
If the Sec. 102.20 rule is not met, Sec. 102.11(b) will be
applicable. If there is a single component that imparts the essential
character to the golf club, the country of origin of that component
will be the country of origin of the golf club. If no single component
can be found to impart the essential character to the finished golf
club, Sec. 102.11(d) is then applicable (Sec. 102.11(c) would not be
relevant in this case). If the golf club was not produced as a result
of a ``simple assembly'' (as defined in Sec. 102.1(o)) of parts from
the same country, then the country of origin of the finished golf club
would be the country of assembly. Therefore, Customs believes that the
Part 102 rules as a whole codify the substantial transformation
principle as applied to golf clubs.
Other Changes
In addition to the changes mentioned in connection with the above
discussion of public comments, the regulatory texts set forth below
incorporate the following additional changes which Customs believes are
necessary based on further internal review of the interim and proposed
regulatory texts:
1. A second sentence has been added to the introductory text of
Sec. 102.20 to provide that requisite tariff shifts within the same
heading must involve changes in subheadings at the same (that is, 6-
digit) level. Since tariff classification is the basis for the
Sec. 102.20 rules, Customs believes that it is essential for those
rules to incorporate the fundamental rule of tariff classification, as
stated in General Rule of Interpretation 6 of the Harmonized System and
the HTSUS, that only subheadings at the same level are comparable.
2. In Sec. 102.20, the tariff shift rules for subheadings 4202.12-
4202.22, 4202.31-4202.32, 4202.91-4202.99 and 4302.30 have been
modified to refer to the assembly of ``foreign'' (rather than
``imported'') cut components, because the word ``imported'' does not
necessarily convey the origin significance that was intended to be
attached to the cut components.
3. In Sec. 102.20, the listings for headings 6815 and 7113-7115
have been redrafted to reflect subheading rules, as intended by the
wording of the respective interim tariff shift rules.
4. In Sec. 102.20, the listing for subheadings 7505.11-7505.22 has
been redrafted to reflect a heading 7505 rule. This change removes an
ambiguity in the tariff shift rule and ensures consistency with the
rules for other related headings of Chapter 75.
5. In Sec. 102.20, the listing for headings 8545-8548 has been
broken into two listings, one for subheadings 8545.11-8547.90 and the
other for heading 8548. This change clarifies the intent and removes an
ambiguity from the interim text.
6. In Sec. 102.20, the words ``domestically produced'' at the end
of the second tariff shift rule for subheadings 9003.11-9003.19 have
been replaced by ``domestic materials'' because ``produced'' has no
specific legal meaning within Part 102 whereas ``domestic material'' is
defined in Sec. 102.1(d).
7. In Sec. 102.20, the listing for headings 9701-9706 has been
broken into two listings, one for subheadings 9701.10-9701.90 and the
other for headings 9702-9706. This change clarifies the intent and
removes an ambiguity from the interim text.
8. Finally, a number of other editorial changes have been made in
the interim and proposed texts, including a large number of changes to
the provisions in the table under Sec. 102.20. These changes, which
correct typographical or other obvious errors or inconsistencies in
language, are also not substantive in effect.
Conclusion
Accordingly, based on the comments received and the analysis of
those comments as set forth above, and based on the additional
considerations discussed above, Customs believes that the interim NAFTA
Marking Rules and the other interim regulations published as T.D. 94-4
and the proposed amendments to those interim regulations published on
May 5, 1995, and on July 12, 1995, should be adopted as a final rule
with certain changes thereto as discussed above and as set forth below.
Although this document sets forth the majority of the interim
regulatory amendments and proposed changes thereto adopted herein as a
final rule and thus both republishes portions of the interim texts
without change and amends other portions of the interim texts to
incorporate the changes discussed above, it does not republish those
unchanged interim amendments involving Sec. 12.130.
Inapplicability of Public Notice and Comment Procedures
Pursuant to the provisions of 5 U.S.C. 553(a), public notice and
comment procedures are inapplicable to these final regulations because
they are within the foreign affairs function of the United States.
Executive Order 12866
Because this document involves a foreign affairs function of the
United States and implements an international agreement, it is not
subject to the provisions of E.O. 12866.
Regulatory Flexibility Act
Based on the supplementary information set forth above and because
these regulations implement obligations of international agreements,
pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C.
601 et seq.) it is certified that the regulations will not have a
significant economic impact on a substantial number of small entities.
Accordingly, the regulations are not subject to the regulatory analysis
or other requirements of 5 U.S.C. 603 and 604.
Drafting Information
The principal author of this document was Francis W. Foote, Office
of Regulations and Rulings, U.S. Customs Service. However, personnel
from other offices participated in its development.
List of Subjects
19 CFR Part 10
Customs duties and inspection, Imports, Reporting and recordkeeping
requirements.
19 CFR Part 12
Customs duties and inspection, Labeling, Marking, Reporting and
recordkeeping requirements, Textiles and textile products.
19 CFR Part 102
Customs duties and inspections, Imports, Reporting and
recordkeeping requirements, Rules of origin, Trade agreements.
19 CFR Part 134
Country or origin, Customs duties and inspections, Imports,
Labeling, Marking, Packaging and containers.
Amendments to the Regulations
Accordingly, part 10 is amended and the interim rule amending parts
12 and 134 of the Customs Regulations (19 CFR parts 12 and 134) and
adding part 102
[[Page 28955]]
of the Customs Regulations (19 CFR part 102), which was published at 59
FR 110-140 on January 3, 1994, and which was corrected at 59 FR 5082 on
February 3, 1994, is adopted as a final rule with certain changes as
discussed above and set forth below.
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
1. The general authority citation for part 10 continues to read as
follows, and the specific authority citation for Sec. 10.22 is removed:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508,
1623, 1624, 3314;
* * * * *
Sec. 10.22 [Removed]
2. Section 10.22 is removed.
PART 102--RULES OF ORIGIN
1. The authority citation for part 102 continues to read as
follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States), 1624, 3314, 3592.
Secs. 102.14 and 102.16 [Removed]
2. Sections 102.14 and 102.16 are removed and Sec. 102.12 is
republished, and Secs. 102.0, 102.1, 102.11, 102.13, 102.15, 102.17,
102.18, 102.19 and 102.20 are revised, to read as follows:
Sec. 102.0 Scope.
Except in the case of goods covered by Sec. 102.21, this part sets
forth rules for determining the country of origin of imported goods for
the purposes specified in paragraph 1 of Annex 311 of the North
American Free Trade Agreement (``NAFTA''). These specific purposes are:
country of origin marking; determining the rate of duty and staging
category applicable to originating textile and apparel goods as set out
in Section 2 (Tariff Elimination) of Annex 300-B (Textile and Apparel
Goods); determining the rate of duty and staging category applicable to
an originating good as set out in Annex 302.2 (Tariff Elimination). The
rules for determining the country of origin of textile and apparel
products set forth in Sec. 102.21 apply for the foregoing purposes and
for the other purposes stated in that section.
Subpart A--General
Sec. 102.1 Definitions.
(a) Advanced in value. ``Advanced in value'' means an increase in
the value of a good as a result of production with respect to that
good, other than by means of those ``minor processing'' operations
described in paragraphs (m)(5), (m)(6), and (m)(7) of this section.
(b) Commingled. ``Commingled'' means physically combined or mixed.
(c) Direct physical identification. ``Direct physical
identification'' means identification by visual or other organoleptic
examination.
(d) Domestic material. ``Domestic material'' means a material whose
country of origin as determined under these rules is the same country
as the country in which the good is produced.
(e) Foreign material. ``Foreign material'' means a material whose
country of origin as determined under these rules is not the same
country as the country in which the good is produced.
(f) Fungible goods or fungible materials. ``Fungible goods or
fungible materials'' means goods or materials that are interchangeable
for commercial purposes and whose properties are essentially identical.
(g) A good wholly obtained or produced. A good ``wholly obtained or
produced'' in a country means:
(1) A mineral good extracted in that country;
(2) A vegetable or plant good harvested in that country;
(3) A live animal born and raised in that country;
(4) A good obtained from hunting, trapping or fishing in that
country;
(5) A good (fish, shellfish and other marine life) taken from the
sea by vessels registered or recorded with that country and flying its
flag;
(6) A good produced on board factory ships from the goods referred
to in paragraph (g)(5) of this section, provided such factory ships are
registered or recorded with that country and fly its flag;
(7) A good taken by that country or a person of that country from
the seabed or beneath the seabed outside territorial waters, provided
that country has rights to exploit such seabed;
(8) A good taken from outer space, provided they are obtained by
that country or a person of that country;
(9) Waste and scrap derived from:
(i) Production in a country, or
(ii) Used goods collected in that country provided such goods are
fit only for the recovery of raw materials; and
(10) A good produced in that country exclusively from goods
referred to in paragraphs (g)(1) through (10) of this section or from
their derivatives, at any stage of production.
(h) Harmonized System. ``Harmonized System'' means the Harmonized
Commodity Description and Coding System, including its general rules of
Interpretation, Section Notes and Chapter Notes, as adopted and
implemented by the United States.
(i) Improved in condition. ``Improved in condition'' means the
enhancement of the physical condition of a good as a result of
production with respect to that good, other than by means of those
``minor processing'' operations described in paragraphs (m)(5), (m)(6),
and (m)(7) of this section.
(j) Incorporated. ``Incorporated'' means physically incorporated
into a good as a result of production with respect to that good.
(k) Indirect materials. ``Indirect materials'' means a good used in
the production, testing or inspection of another good but not
physically incorporated into that other good, or a good used in the
maintenance of buildings or the operation of equipment associated with
the production of that other good, including:
(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.
(l) Material. ``Material'' means a good that is incorporated into
another good as a result of production with respect to that other good,
and includes parts, ingredients, subassemblies, and components.
(m) Minor processing. ``Minor processing'' means the following:
(1) Mere dilution with water or another substance that does not
materially alter the characteristics of the good;
(2) Cleaning, including removal of rust, grease, paint, or other
coatings;
(3) Application of preservative or decorative coatings, including
lubricants, protective encapsulation, preservative or decorative paint,
or metallic coatings;
(4) Trimming, filing or cutting off small amounts of excess
materials;
(5) Unloading, reloading or any other operation necessary to
maintain the good in good condition;
(6) Putting up in measured doses, packing, repacking, packaging,
repackaging;
[[Page 28956]]
(7) Testing, marking, sorting, or grading;
(8) Ornamental or finishing operations incidental to textile good
production designed to enhance the marketing appeal or the ease of care
of the product, such as dyeing and printing, embroidery and appliques,
pleating, hemstitching, stone or acid washing, permanent pressing, or
the attachment of accessories notions, findings and trimmings; or
(9) Repairs and alterations, washing, laundering, or sterilizing.
(n) Production. ``Production'' means growing, mining, harvesting,
fishing, trapping, hunting, manufacturing, processing or assembling a
good.
(o) Simple assembly. ``Simple assembly'' means the fitting together
of five or fewer parts all of which are foreign (excluding fasteners
such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or
by other means without more than minor processing.
(p) Value. ``Value'' means, with respect to Sec. 102.13:
(1) In the case of a good, its customs value or transaction value
within the meaning of the appendix to part 181 of this chapter; or
(2) In the case of a material, its customs value or value within
the meaning of the appendix to part 181 of this chapter.
Subpart B--Rules of Origin
Sec. 102.11 General rules.
The following rules shall apply for purposes of determining the
country of origin of imported goods other than textile and apparel
products covered by Sec. 102.21.
(a) The country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an
applicable change in tariff classification set out in Sec. 102.20 and
satisfies any other applicable requirements of that section, and all
other applicable requirements of these rules are satisfied.
(b) Except for a good that is specifically described in the
Harmonized System as a set, or is classified as a set pursuant to
General Rule of Interpretation 3, where the country of origin cannot be
determined under paragraph (a) of this section:
(1) The country of origin of the good is the country or countries
of origin of the single material that imparts the essential character
to the good, or
(2) If the material that imparts the essential character to the
good is fungible, has been commingled, and direct physical
identification of the origin of the commingled material is not
practical, the country or countries of origin may be determined on the
basis of an inventory management method provided under the appendix to
part 181 of this chapter.
(c) Where the country of origin cannot be determined under
paragraph (a) or (b) of this section and the good is specifically
described in the Harmonized System as a set or mixture, or classified
as a set, mixture or composite good pursuant to General Rule of
Interpretation 3, the country of origin of the good is the country or
countries of origin of all materials that merit equal consideration for
determining the essential character of the good.
(d) Where the country of origin of a good cannot be determined
under paragraph (a), (b) or (c) of this section, the country of origin
of the good shall be determined as follows:
(1) If the good was produced only as a result of minor processing,
the country of origin of the good is the country or countries of origin
of each material that merits equal consideration for determining the
essential character of the good;
(2) If the good was produced by simple assembly and the assembled
parts that merit equal consideration for determining the essential
character of the good are from the same country, the country of origin
of the good is the country of origin of those parts; or
(3) If the country of origin of the good cannot be determined under
paragraph (d)(1) or (d)(2) of this section, the country of origin of
the good is the last country in which the good underwent production.
Sec. 102.12 Fungible goods.
When fungible goods of different countries of origin are commingled
the country of origin of the goods:
(a) Is the countries of origin of those commingled goods; or
(b) If the good is fungible, has been commingled, and direct
physical identification of the origin of the commingled good is not
practical, the country or countries of origin may be determined on the
basis of an inventory management method provided under the appendix to
part 181 of this chapter.
Sec. 102.13 De Minimis.
(a) Except as otherwise provided in paragraphs (b) and (c) of this
section, foreign materials that do not undergo the applicable change in
tariff classification set out in Sec. 102.20 or satisfy the other
applicable requirements of that section when incorporated into a good
shall be disregarded in determining the country of origin of the good
if the value of those materials is no more than 7 percent of the value
of the good or 10 percent of the value of a good of Chapter 22,
Harmonized System.
(b) Paragraph (a) of this section does not apply to a foreign
material incorporated in a good provided for in Chapter 1, 2, 3, 4, 7,
8, 11, 12, 15, 17, or 20 of the Harmonized System.
(c) Foreign components or materials that do not undergo the
applicable change in tariff classification set out in Sec. 102.21 or
satisfy the other applicable requirements of that section when
incorporated into a textile or apparel product covered by that section
shall be disregarded in determining the country of origin of the good
if the total weight of those components or materials is not more than 7
percent of the total weight of the good.
Sec. 102.15 Disregarded materials.
(a) The following materials shall be disregarded when determining
whether the good undergoes the applicable change in tariff
classification set out in Sec. 102.20 or Sec. 102.21, or satisfies the
other applicable requirements of those sections:
(1) Packaging materials and containers in which a good is packaged
for retail sale that are classified with the good;
(2) Accessories, spare parts or tools delivered with the good that
are classified with the good and shipped with the good;
(3) Packing materials and containers in which a good is packed for
shipment; and
(4) Indirect materials.
(b) [Reserved]
Sec. 102.17 Non-qualifying operations.
A foreign material shall not be considered to have undergone an
applicable change in tariff classification specified in Sec. 102.20 or
Sec. 102.21 or to have met any other applicable requirements of those
sections merely by reason of one or more of the following:
(a) A change in end-use;
(b) Dismantling or disassembly;
(c) Simple packing, repacking or retail packaging without more than
minor processing;
(d) Mere dilution with water or another substance that does not
materially alter the characteristics of the material; or
(e) Collecting parts that, as collected, are classifiable in the
same tariff provision as an assembled good pursuant to General Rule of
[[Page 28957]]
Interpretation 2(a), without any additional operation other than minor
processing.
Sec. 102.18 Rules of interpretation.
(a) When General Rule of Interpretation (GRI) 2(a) is referred to
in Sec. 102.20 as an exception to an allowed change in tariff
classification, this means that such change will not be acceptable for
purposes of that section if the change results from the assembly of
parts into an incomplete or unfinished good which is classifiable in
the same manner as a complete or finished good pursuant to GRI 2(a).
(b) (1) For purposes of identifying the material that imparts the
essential character to a good under Sec. 102.11, the only materials
that shall be taken into consideration are those domestic or foreign
materials that are classified in a tariff provision from which a change
in tariff classification is not allowed under the Sec. 102.20 specific
rule or other requirements applicable to the good. For purposes of this
paragraph (b)(1):
(i) The materials to be considered must be classified in a tariff
provision from which a change in tariff classification is not allowed
under the specific rule or other requirements applicable to the good
under consideration. For example, in the case of a good classified in
HTSUS subheading 8607.11 (the rule for which specifies a change to
subheading 8607.11 from any other subheading, except from subheading
8607.12, and except from subheading 8607.19 when that change is
pursuant to GRI 2(a)), the only materials that may be considered for
purposes of identifying the materials that impart the essential
character to the good are those that are classified in subheadings
8607.11, 8607.12 and, if the tariff shift is pursuant to GRI 2(a),
8607.19;
(ii) Materials that may be considered include materials produced by
the producer of the good and incorporated in the good. For example, if
a producer of a good purchases raw materials and converts those raw
materials into a component that is incorporated in the good, that
component is a material that may be considered for purposes of
identifying the materials that impart the essential character to the
good, provided that the component is classified in a tariff provision
from which a change in tariff classification is not allowed under the
specific rule or other requirements applicable to the good; and
(iii) If there is only one material that is classified in a tariff
provision from which a change in tariff classification is not allowed
under the Sec. 102.20 specific rule or other requirements applicable to
the good, then that material will represent the single material that
imparts the essential character to the good under Sec. 102.11.
(2) For purposes of determining which one of two or more materials
described in paragraph (b)(1) of this section imparts the essential
character to a good under Sec. 102.11, various factors may be examined
depending upon the type of good involved. These factors include, but
are not limited to, the following:
(i) The nature of each material, such as its bulk, quantity, weight
or value; and
(ii) The role of each material in relation to the use of the good.
Sec. 102.19 NAFTA preference override.
(a) Except in the case of goods covered by paragraph (b) of this
section, if a good which is originating within the meaning of
Sec. 181.1(q) of this chapter is not determined under Sec. 102.11(a) or
(b) or Sec. 102.21 to be a good of a single NAFTA country, the country
of origin of such good is the last NAFTA country in which that good
underwent production other than minor processing, provided that a
Certificate of Origin (see Sec. 181.11 of this chapter) has been
completed and signed for the good.
(b) If, under any other provision of this part, the country of
origin of a good which is originating within the meaning of
Sec. 181.1(q) of this chapter is determined to be the United States and
that good has been exported from, and returned to, the United States
after having been advanced in value or improved in condition in another
NAFTA country, the country of origin of such good for Customs duty
purposes is the last NAFTA country in which that good was advanced in
value or improved in condition before its return to the United States.
Sec. 102.20 Specific rules by tariff classification.
The following rules are the rules specified in Sec. 102.11(a)(3)
and other sections of this part. Where a rule under this section
permits a change to a subheading from another subheading of the same
heading, the rule shall be satisfied only if the change is from a
subheading of the same level specified in the rule.
----------------------------------------------------------------------------------------------------------------
HTSUS Tariff shift and/or other requirements
----------------------------------------------------------------------------------------------------------------
(a) Section I: Chapters 1 through 5
----------------------------------------------------------------------------------------------------------------
0101-0106........................................... A change to heading 0101 through 0106 from any other
chapter.
0201-0209........................................... A change to heading 0201 through 0209 from any other
chapter.
0210.11-0210.20..................................... A change to subheading 0210.11 through 0210.20 from any
other chapter.
0210.90............................................. A change to subheading 0210.90 from any other chapter; or
A change to edible meals and flours of subheading 0210.90
from any product other than edible meals and flours of
Chapter 2.
0301-0303........................................... A change to heading 0301 through 0303 from any other
chapter.
0304................................................ A change to heading 0304 from any other chapter; or
A change to fillets of heading 0304 from any other
heading.
0305.10............................................. A change to subheading 0305.10 from any other subheading.
0305.20............................................. A change to subheading 0305.20 from any other chapter.
0305.30............................................. A change to subheading 0305.30 from any other subheading,
except from fillets of heading 0304.
0305.41-0305.69..................................... A change to subheading 0305.41 through 0305.69 from any
other chapter.
0306................................................ A change to heading 0306 from any other chapter.
0307................................................ A change to heading 0307 from any other chapter; or
A change to edible meals and flours from within Chapter 3.
0401................................................ A change to heading 0401 from any other chapter.
0402.10-0402.29..................................... A change to subheading 0402.10 through 0402.29 from any
other chapter.
0402.91-0402.99..................................... A change to subheading 0402.91 through 0402.99 from any
other chapter.
0403.10............................................. A change to subheading 0403.10 from any other subheading.
0403.90............................................. A change to subheading 0403.90 from any other chapter; or
A change to sour cream or kephir from any other product of
Chapter 4.
[[Page 28958]]
0404................................................ A change to heading 0404 from any other heading.
0405.10............................................. A change to subheading 0405.10 from any other heading.
0405.20............................................. A change to subheading 0405.20 from any other chapter,
except from subheading 1901.90; or
A change to subheading 0405.20 from any other subheading,
provided that the good contains no more than 50 percent
by weight of milk solids.
0405.90............................................. A change to subheading 0405.90 from any other heading.
0406................................................ A change to heading 0406 from any other heading.
0407-0410........................................... A change to heading 0407 through 0410 from any other
chapter.
0501-0511........................................... A change to heading 0501 through 0511 from any other
chapter.
----------------------------------------------------------------------------------------------------------------
(b) Section II: Chapters 6 through 14
----------------------------------------------------------------------------------------------------------------
Note: Notwithstanding the specific rules of this section, an agricultural or horticultural good grown in the
territory of a country shall be treated as a good of that country even if grown from seed or bulbs, root stock,
cuttings, slips or other live parts of plants, or from whole plants, imported from a foreign country.
0601-0602........................................... A change to heading 0601 through 0602 from any other
heading, including another heading within that group.
0603-0604........................................... A change to heading 0603 through 0604 from any other
heading, including another heading within that group,
except from heading 0602.
0701-0709........................................... A change to heading 0701 through 0709 from any other
chapter.
0710................................................ A change to heading 0710 from any other chapter.
0711................................................ A change to heading 0711 from any other chapter.
0712................................................ A change to heading 0712 from any other chapter; or
A change to powdered vegetables of heading 0712 from any
other product of Chapter 7, if put up for retail sale.
0713-0714........................................... A change to heading 0713 through 0714 from any other
chapter.
0801-0810........................................... A change to heading 0801 through 0810 from any other
chapter.
0811................................................ A change to heading 0811 from any other chapter.
0812................................................ A change to heading 0812 from any other chapter.
0813................................................ A change to heading 0813 from any other chapter.
0814................................................ A change to heading 0814 from any other chapter.
0901.11-0901.12..................................... A change to subheading 0901.11 through 0901.12 from any
other chapter.
0901.21-0901.22..................................... A change to subheading 0901.21 through 0901.22 from any
subheading outside that group.
0901.90............................................. A change to subheading 0901.90 from any other chapter.
0902-0903........................................... A change to heading 0902 through 0903 from any other
chapter.
0904-0910........................................... A change to heading 0904 through 0910 from any other
chapter; or
A change to crushed, ground, or powdered products of
heading 0904 through 0910 from within Chapter 9, if put
up for retail sale; or
A change to subheading 0910.91 from any other subheading,
provided that a single spice ingredient of foreign origin
constitutes no more than 60 percent by weight of the
good.
1001-1008........................................... A change to heading 1001 through 1008 from any other
chapter.
1101-1106........................................... A change to heading 1101 through 1106 from any other
chapter.
1107................................................ A change to heading 1107 from any other chapter.
1108-1109........................................... A change to heading 1108 through 1109 from any other
heading, including another heading within that group.
1201-1207........................................... A change to heading 1201 through 1207 from any other
chapter.
1208................................................ A change to heading 1208 from any other heading.
1209-1214........................................... A change to heading 1209 through 1214 from any other
chapter.
1301-1302........................................... A change to heading 1301 through 1302 from any other
chapter.
1401-1404........................................... A change to heading 1401 through 1404 from any other
chapter.
----------------------------------------------------------------------------------------------------------------
(c) Section III: Chapter 15
----------------------------------------------------------------------------------------------------------------
1501-1516........................................... A change to heading 1501 through 1516 from any other
chapter.
1517.10............................................. A change to subheading 1517.10 from any other heading.
1517.90............................................. A change to subheading 1517.90 from any other chapter,
except from heading 3823; or
A change to subheading 1517.90 from any other heading,
provided that no single oil ingredient of foreign origin
constitutes more than 60 percent by weight of the good.
1518................................................ A change to heading 1518 from any other heading.
1520................................................ A change to heading 1520 from any other heading, except
from subheading 2905.45 and heading 3823.
1521-1522........................................... A change to heading 1521 through 1522 from any other
chapter, except from heading 3823.
----------------------------------------------------------------------------------------------------------------
(d) Section IV: Chapters 16 through 24
----------------------------------------------------------------------------------------------------------------
1601-1605........................................... A change to heading 1601 through 1605 from any other
chapter.
1701-1702........................................... A change to heading 1701 through 1702 from any other
chapter.
1703................................................ A change to heading 1703 from any other chapter.
1704................................................ A change to heading 1704 from any other heading.
1801-1803........................................... A change to heading 1801 through 1803 from any other
chapter.
1804................................................ A change to heading 1804 from any other heading, except
from heading 1803.
1805................................................ A change to heading 1805 from any other heading, except
from subheading 1803.20.
1806.10............................................. A change to subheading 1806.10 from any other heading,
except from heading 1805 or from Chapter 17; or
A change to subheading 1806.10 from Chapter 17, provided
that the good contains less than 65 percent by dry weight
of sugar.
1806.20............................................. A change to subheading 1806.20 from any other heading,
except from Chapter 17; or
[[Page 28959]]
A change to subheading 1806.20 from Chapter 17, provided
that the good contains less than 65 percent by dry weight
of sugar.
1806.31............................................. A change to subheading 1806.31 from any other subheading.
1806.32............................................. A change to subheading 1806.32 from any other subheading.
1806.90............................................. A change to subheading 1806.90 from any other subheading.
1901.10............................................. A change to subheading 1901.10 from any other subheading.
1901.20............................................. A change to subheading 1901.20 from any other subheading.
1901.90............................................. A change to subheading 1901.90 from any other heading.
1902.11-1902.19..................................... A change to subheading 1902.11 through 1902.19 from any
other heading.
1902.20............................................. A change to subheading 1902.20 from any other subheading.
1902.30-1902.40..................................... A change to subheading 1902.30 through 1902.40 from any
other heading.
1903................................................ A change to heading 1903 from any other heading.
1904.10............................................. A change to subheading 1904.10 from any other heading.
1904.20............................................. A change to subheading 1904.20 from any other subheading.
1904.90............................................. A change to subheading 1904.90 from any other heading.
1905................................................ A change to heading 1905 from any other heading.
Chapter 20 Note: Notwithstanding the specific rules of this chapter, fruit, nut and vegetable preparations of
Chapter 20 that have been prepared or preserved merely by freezing, by packing (including canning) in water,
brine or natural juices, or by roasting, either dry or in oil (including processing incidental to freezing,
packing, or roasting), shall be treated as a good of the country in which the fresh good was produced.
2001-2007........................................... A change to heading 2001 through 2007 from any other
chapter.
2008.11............................................. A change to subheading 2008.11 from any other chapter,
provided that the change is not the result of mere
blanching of peanuts.
2008.19-2008.99..................................... A change to subheading 2008.19 through 2008.99 from any
other chapter, provided that the change is not the result
of mere blanching of nuts.
2009.11-2009.30..................................... A change to subheading 2009.11 through 2009.30 from any
other chapter.
2009.40-2009.80..................................... A change to subheading 2009.40 through 2009.80 from any
other chapter.
2009.90............................................. A change to subheading 2009.90 from any other chapter; or
A change to subheading 2009.90 from any other subheading,
provided that a single juice ingredient of foreign
origin, or juice ingredients from a single foreign
country, constitute in single strength form no more than
60 percent by volume of the good.
2101................................................ A change to heading 2101 from any other heading.
2102................................................ A change to heading 2102 from any other heading.
2103.10............................................. A change to subheading 2103.10 from any other heading.
2103.20............................................. A change to subheading 2103.20 from any other heading.
2103.30............................................. A change to subheading 2103.30 from any other subheading;
or
A change to prepared mustard of subheading 2103.30 from
mustard flour or meal.
2103.90............................................. A change to subheading 2103.90 from any other subheading.
2104.10............................................. A change to subheading 2104.10 from any other subheading.
2104.20............................................. A change to subheading 2104.20 from any other subheading.
2105................................................ A change to heading 2105 from any other heading.
2106.10............................................. A change to subheading 2106.10 from any other subheading.
2106.90............................................. A change to a good of subheading 2106.90, other than to
compound alcoholic preparations, from any other
subheading, except from Chapter 4, Chapter 17, heading
2009, subheading 1901.90 or subheading 2202.90; or
A change to subheading 2106.90 from Chapter 4 or
subheading 1901.90, provided that the good contains no
more than 50 percent by weight of milk solids; or
A change to subheading 2106.90 from Chapter 17, provided
that the good contains less than 65 percent by dry weight
of sugar; or
A change to subheading 2106.90 from heading 2009 or
subheading 2202.90, provided that a single juice
ingredient of foreign origin, or juice ingredients from a
single foreign country, constitute in single strength
form no more than 60 percent by volume of the good; or
A change to compound alcoholic preparations of subheading
2106.90 from any other subheading, except from subheading
2208.20 through 2208.50.
2201................................................ A change to heading 2201 from any other chapter.
2202.10............................................. A change to sweetened and/or flavored waters of subheading
2202.10 from any other chapter; or
A change to other beverages of subheading 2202.10 from any
other heading.
2202.90............................................. A change to subheading 2202.90 from any other subheading,
except from Chapter 4 or heading 1901, 2009, or 2106; or
A change to subheading 2202.90 from Chapter 4 or heading
1901, provided that the good contains no more than 50
percent by weight of milk solids; or
A change to subheading 2202.90 from heading 2009 or
subheading 2106.90, provided that a single juice
ingredient of foreign origin, or juice ingredients from a
single foreign country, constitute in single strength
form no more than 60 percent by volume of the good.
2203................................................ A change to heading 2203 from any other heading.
2204.10-2204.29..................................... A change to subheading 2204.10 through 2204.29 from any
other subheading outside that group.
2204.30............................................. A change to subheading 2204.30 from any other heading.
2205................................................ A change to heading 2205 from any other heading, except
from heading 2204; or
A change to vermouth of heading 2205 from heading 2204.
2206................................................ A change to heading 2206 from any other heading.
2207................................................ A change to heading 2207 from any other heading, except
from compound alcoholic preparations of subheading
2106.90 or heading 2208.
2208.20-2208.70..................................... A change to subheading 2208.20 through 2208.70 from any
other subheading outside that group, except from
subheading 2106.90; or
[[Page 28960]]
A change to liqueurs or cordials of subheading 2208.70
from any other product.
2208.90............................................. A change to subheading 2208.90 from any other subheading,
except from subheading 2106.90; or
A change to kirschwasser or ratafia of subheading 2208.90
from any other product.
2209................................................ A change to heading 2209 from any other heading.
2301-2308........................................... A change to heading 2301 through 2308 from any other
chapter.
2309.10............................................. A change to subheading 2309.10 from any other heading.
2309.90............................................. A change to subheading 2309.90 from any other heading,
except from Chapter 4 or heading 1901; or
A change to subheading 2309.90 from Chapter 4 or heading
1901, provided that the good contains no more than 50
percent by weight of milk solids.
2401................................................ A change to heading 2401 from any other chapter.
2402-2403........................................... A change to heading 2402 through 2403 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
(e) Section V: Chapters 25 through 27
----------------------------------------------------------------------------------------------------------------
2501-2516........................................... A change to heading 2501 through 2516 from any other
heading, including another heading within that group.
2517.10-2517.20..................................... A change to subheading 2517.10 through 2517.20 from any
other heading.
2517.30............................................. A change to subheading 2517.30 from any other subheading.
2517.41-2517.49..................................... A change to subheading 2517.41 through 2517.49 from any
other heading.
2518-2530........................................... A change to heading 2518 through 2530 from any other
heading, including another heading within that group.
2601-2621........................................... A change to heading 2601 through 2621 from any other
heading, including another heading within that group.
Chapter 27 Note: For purposes of this chapter, a ``chemical reaction'' is defined as a process in which
chemical bonds in molecules are broken and new chemical bonds are formed between the fragmented molecules and/or
added elements so that one or more of the original bond/s no longer link the same chemical element/s or
functional group/s.
2701-2706........................................... A change to heading 2701 through 2706 from any other
heading, including any heading within that group.
2707.10-2707.99..................................... A change to subheading 2707.10 through 2707.99 from any
other heading; or
A change to subheading 2707.10 through 2707.99 from any
other subheading, including any subheading within that
group, provided that the good resulting from such change
is the product of a chemical reaction.
2708-2709........................................... A change to heading 2708 through 2709 from any other
heading, including another heading within that group.
2710................................................ A change to heading 2710 from any other heading; or
A change to any good of heading 2710 from any other good
of heading 2710, provided that the good resulting from
such change is the product of a chemical reaction.
2711.11............................................. A change to subheading 2711.11 from any other subheading,
except from subheading 2711.21.
2711.12-2711.19..................................... A change to subheading 2711.12 through 2711.19 from any
other subheading, including another subheading within
that group, except from subheading 2711.29.
2711.21............................................. A change to subheading 2711.21 from any other subheading,
except from subheading 2711.11.
2711.29............................................. A change to subheading 2711.29 from any other subheading,
except from subheading 2711.12 through 2711.21.
2712-2714........................................... A change to heading 2712 through 2714 from any other
heading, including another heading within that group.
2715................................................ A change to heading 2715 from any other heading, except
from heading 2714 or subheading 2713.20.
2716................................................ A change to heading 2716 from any other heading.
----------------------------------------------------------------------------------------------------------------
(f) Section VI: Chapters 28 through 38
----------------------------------------------------------------------------------------------------------------
Notes: 1. Chemical reaction origin rule--
Any good of Chapters 28, 29, 31, 32 or 38, except a good of heading 3823, that is the product of a chemical
reaction shall be considered to be a good of the country in which the reaction occurred.
A chemical reaction is defined as a process in which chemical bonds in molecules are broken and new chemical
bonds are formed between the fragmented molecules and/or added elements so that one or more of the original
bonds no longer link the same chemical element/s or functional group/s.
Notwithstanding any of the line-by-line rules, the ``chemical reaction'' rule may be applied to any good
classified in the above chapters.
2. Separation prohibition--
A foreign material/component will not be deemed to have satisfied all applicable requirements of these rules
by reason of a change from one classification to another merely as the result of the separation of one or more
individual materials or components from a man-made mixture unless the isolated material/component, itself, also
underwent a chemical reaction.
2801.10-2801.30..................................... A change to subheading 2801.10 through 2801.30 from any
other subheading, including another subheading within
that group.
2802................................................ A change to heading 2802 from any other heading, except
from heading 2503.
2803................................................ A change to heading 2803 from any other heading.
2804.10-2804.50..................................... A change to subheading 2804.10 through 2804.50 from any
other subheading, including another subheading within
that group.
2804.61-2804.69..................................... A change to subheading 2804.61 through 2804.69 from any
other subheading outside that group.
2804.70-2804.90..................................... A change to subheading 2804.70 through 2804.90 from any
other subheading, including another subheading within
that group.
2805................................................ A change to heading 2805 from any other heading.
2806.10-2806.20..................................... A change to subheading 2806.10 through 2806.20 from any
other subheading,
including another subheading within that group......
2807-2808........................................... A change to heading 2807 through 2808 from any other
heading, including another heading within that group.
2809.10-2809.20..................................... A change to subheading 2809.10 through 2809.20 from any
other subheading, including another subheading within
that group.
2810................................................ A change to heading 2810 from any other heading.
2811.11............................................. A change to subheading 2811.11 from any other subheading.
[[Page 28961]]
2811.19............................................. A change to subheading 2811.19 from any other subheading,
except from subheading 2811.22.
2811.21............................................. A change to subheading 2811.21 from any other subheading.
2811.22............................................. A change to subheading 2811.22 from any other subheading,
except from subheading 2505.10, 2506.10, or 2811.19.
2811.23-2811.29..................................... A change to subheading 2811.23 through 2811.29 from any
other subheading, including another subheading within
that group.
2812.10-2813.90..................................... A change to subheading 2812.10 through 2813.90 from any
other subheading, including another subheading within
that group.
2814................................................ A change to heading 2814 from any other heading.
2815.11-2815.12..................................... A change to subheading 2815.11 through 2815.12 from any
other subheading outside that group.
2815.20-2815.30..................................... A change to subheading 2815.20 through 2815.30 from any
other subheading, including another subheading within
that group.
2816.10............................................. A change to subheading 2816.10 from any other subheading.
2816.20............................................. A change to subheading 2816.20 from any other subheading,
except from subheading 2530.90.
2816.30............................................. A change to subheading 2816.30 from any other subheading.
2817................................................ A change to heading 2817 from any other heading, except
from heading 2608.
2818.10-2818.30..................................... A change to subheading 2818.10 through 2818.30 from any
other subheading, including another subheading within
that group, except from heading 2606 or subheading
2620.40.
2819.10-2819.90..................................... A change to subheading 2819.10 through 2819.90 from any
other subheading, including another subheading within
that group.
2820.10-2820.90..................................... A change to subheading 2820.10 through 2820.90 from any
other subheading, including another subheading within
that group, except from subheading 2530.90 or heading
2602.
2821.10............................................. A change to subheading 2821.10 from any other subheading.
2821.20............................................. A change to subheading 2821.20 from any other subheading,
except from subheading 2530.30 or 2601.11 through
2601.20.
2822................................................ A change to heading 2822 from any other heading, except
from heading 2605.
2823................................................ A change to heading 2823 from any other heading.
2824.10-2824.90..................................... A change to subheading 2824.10 through 2824.90 from any
other subheading, including another subheading within
that group, except from heading 2607.
2825.10-2825.40..................................... A change to subheading 2825.10 through 2825.40 from any
other subheading, including another subheading within
that group.
2825.50............................................. A change to subheading 2825.50 from any other subheading,
except from heading 2603.
2825.60............................................. A change to subheading 2825.60 from any other subheading,
except from subheading 2615.10.
2825.70............................................. A change to subheading 2825.70 from any other subheading,
except from subheading 2613.10.
2825.80............................................. A change to subheading 2825.80 from any other subheading,
except from subheading 2617.10.
2825.90............................................. A change to subheading 2825.90 from any other subheading,
provided that the good classified in subheading 2825.90
is the product of a ``chemical reaction'' as defined in
Note 1.
2826.11-2833.19..................................... A change to subheading 2826.11 through 2833.19 from any
other subheading, including another subheading within
that group.
2833.21............................................. A change to subheading 2833.21 from any other subheading,
except from subheading 2530.20.
2833.22-2833.26..................................... A change to subheading 2833.22 through 2833.26 from any
other subheading, including another subheading within
that group.
2833.27............................................. A change to subheading 2833.27 from any other subheading,
except from subheading 2511.10.
2833.29............................................. A change to subheading 2833.29 from any other subheading,
except from heading 2520.
2833.30-2833.40..................................... A change to subheading 2833.30 through 2833.40 from any
other subheading, including another subheading within
that group.
2834.10-2834.29..................................... A change to subheading 2834.10 through 2834.29 from any
other subheading, including another subheading within
that group.
2835.10-2835.25..................................... A change to subheading 2835.10 through 2835.25 from any
other subheading, including another subheading within
that group.
2835.26............................................. A change to subheading 2835.26 from any other subheading,
except from heading 2510.
2835.29-2835.39..................................... A change to subheading 2835.29 through 2835.39 from any
other subheading, including another subheading within
that group.
2836.10............................................. A change to subheading 2836.10 from any other subheading.
2836.20............................................. A change to subheading 2836.20 from any other subheading,
except from subheading 2530.90.
2836.30-2836.40..................................... A change to subheading 2836.30 through 2836.40 from any
other subheading, including another subheading within
that group.
2836.50............................................. A change to subheading 2836.50 from any other subheading,
except from heading 2509, subheading 2517.41 or 2517.49,
heading 2521, or subheading 2530.90.
2836.60............................................. A change to subheading 2836.60 from any other subheading,
except from subheading 2511.20.
2836.70............................................. A change to subheading 2836.70 from any other subheading,
except from heading 2607.
2836.91............................................. A change to subheading 2836.91 from any other subheading.
2836.92............................................. A change to subheading 2836.92 from any other subheading,
except from subheading 2530.90.
2836.99............................................. A change to bismuth carbonate of subheading 2836.99 from
any other subheading, except from subheading 2617.90; or
A change to subheading 2836.99 from any other subheading,
provided that the good classified in subheading 2836.99
is the product of a ``chemical reaction'' as defined in
Note 1.
2837.11-2837.20..................................... A change to subheading 2837.11 through 2837.20 from any
other subheading, including another subheading within
that group.
2838................................................ A change to heading 2838 from any other heading.
2839.11-2839.19..................................... A change to subheading 2839.11 through 2839.19 from any
other subheading outside that group.
2839.20-2839.90..................................... A change to subheading 2839.20 through 2839.90 from any
other subheading, including another subheading within
that group.
[[Page 28962]]
2840.11-2840.20..................................... A change to subheading 2840.11 through 2840.20 from any
other subheading outside that group, except from
subheading 2528.10.
2840.30............................................. A change to subheading 2840.30 from any other subheading.
2841.10-2841.40..................................... A change to subheading 2841.10 through 2841.40 from any
other subheading, including another subheading within
that group.
2841.50............................................. A change to subheading 2841.50 from any other subheading,
except from heading 2610.
2841.61-2841.69..................................... A change to subheading 2841.61 through 2841.69 from any
other subheading outside that group.
2841.70............................................. A change to subheading 2841.70 from any other subheading,
except from subheading 2613.90.
2841.80............................................. A change to subheading 2841.80 from any other subheading,
except from heading 2611.
2841.90............................................. A change to subheading 2841.90 from any other subheading,
provided that the good classified in subheading 2841.90
is the product of a ``chemical reaction'' as defined in
Note 1.
2842.10............................................. A change to subheading 2842.10 from any other subheading.
2842.90............................................. A change to subheading 2842.90 from any other subheading,
provided that the good classified in subheading 2842.90
is the product of a ``chemical reaction'' as defined in
Note 1.
2843.10............................................. A change to subheading 2843.10 from any other subheading,
except from heading 7106, 7108, 7110, or 7112.
2843.21-2843.29..................................... A change to subheading 2843.21 through 2843.29 from any
other subheading, including another subheading within
that group.
2843.30-2843.90..................................... A change to subheading 2843.30 through 2843.90 from any
other subheading, including another subheading within
that group, except from subheading 2616.90.
2844.10............................................. A change to subheading 2844.10 from any other subheading,
except from subheading 2612.10.
2844.20............................................. A change to subheading 2844.20 from any other subheading.
2844.30............................................. A change to subheading 2844.30 from any other subheading,
except from subheading 2844.20.
2844.40-2844.50..................................... A change to subheading 2844.40 through 2844.50 from any
other subheading, including another subheading within
that group.
2845................................................ A change to heading 2845 from any other heading.
2846................................................ A change to heading 2846 from any other heading, except
from subheading 2530.90.
2847................................................ A change to heading 2847 from any other heading.
2848................................................ A change to heading 2848 from any other heading.
2849.10-2849.90..................................... A change to subheading 2849.10 through 2849.90 from any
other subheading, including another subheading within
that group.
2850-2851........................................... A change to heading 2850 through 2851 from any other
heading, including another heading within that group.
2901.10-2901.90..................................... A change to subheading 2901.10 through 2901.90 from any
other subheading, including another subheading within
that group, except from acyclic petroleum oils of heading
2710 or from subheading 2711.13, 2711.14, 2711.19, or
2711.29.
2902.11............................................. A change to subheading 2902.11 from any other subheading.
2902.19............................................. A change to subheading 2902.19 from any other subheading,
except from non-aromatic cyclic petroleum oils of
subheading 2707.50, 2707.99, or heading 2710.
2902.20............................................. A change to subheading 2902.20 from any other subheading,
except from subheading 2707.10, 2707.50, or 2707.99.
2902.30............................................. A change to subheading 2902.30 from any other subheading,
except from subheading 2707.20, 2707.50, or 2707.99.
2902.41-2902.44..................................... A change to subheading 2902.41 through 2902.44 from any
other subheading, including another subheading within
that group, except from subheading 2707.30, 2707.50 or
2707.99.
2902.50............................................. A change to subheading 2902.50 from any other subheading.
2902.60............................................. A change to subheading 2902.60 from any other subheading,
except from subheading 2707.30, 2707.50, 2707.99, or
heading 2710.
2902.70-2902.90..................................... A change to subheading 2902.70 through 2902.90 from any
other subheading, including another subheading within
that group, except from subheading 2707.50, 2707.99, or
heading 2710.
2903.11-2903.30..................................... A change to subheading 2903.11 through 2903.30 from any
other subheading, including another subheading within
that group.
2903.41-2903.49..................................... A change to subheading 2903.41 through 2903.49 from any
other subheading outside that group.
2903.51-2904.90..................................... A change to subheading 2903.51 through 2904.90 from any
other subheading, including another subheading within
that group.
2905.11-2905.19..................................... A change to subheading 2905.11 through 2905.19 from any
other subheading, including another subheading within
that group.
2905.22-2905.29..................................... A change to subheading 2905.22 through 2905.29 from any
other subheading, including another subheading within
that group, except from subheading 1301.90, 3301.90, or
3805.90.
2905.31-2905.44..................................... A change to subheading 2905.31 through 2905.44 from any
other subheading, including another subheading within
that group.
2905.45............................................. A change to subheading 2905.45 from any other subheading,
except from heading 1520.
2905.49-2905.50..................................... A change to subheading 2905.49 through 2905.50 from any
other subheading, including another subheading within
that group.
2906.11............................................. A change to subheading 2906.11 from any other subheading,
except from subheading 3301.24 or 3301.25.
2906.12-2906.13..................................... A change to subheading 2906.12 through 2906.13 from any
other subheading, including another subheading within
that group.
2906.14............................................. A change to subheading 2906.14 from any other subheading,
except from heading 3805.
2906.19............................................. A change to subheading 2906.19 from any other subheading,
except from subheading 3301.90 or 3805.90.
2906.21............................................. A change to subheading 2906.21 from any other subheading.
2906.29............................................. A change to subheading 2906.29 from any other subheading,
except from subheading 2707.60 or 3301.90.
2907.11............................................. A change to subheading 2907.11 from any other subheading,
except from subheading 2707.60.
2907.12-2907.22..................................... A change to subheading 2907.12 through 2907.22 from any
other subheading, including another subheading within
that group, except from subheading 2707.99.
2907.23............................................. A change to subheading 2907.23 from any other subheading.
[[Page 28963]]
2907.29-2907.30..................................... A change to subheading 2907.29 through 2907.30 from any
other subheading, including another subheading within
that group, except from subheading 2707.99.
2908................................................ A change to heading 2908 from any other heading.
2909.11-2909.49..................................... A change to subheading 2909.11 through 2909.49 from any
other subheading, including another subheading within
that group.
2909.50............................................. A change to subheading 2909.50 from any other subheading,
except from subheading 3301.90.
2909.60............................................. A change to subheading 2909.60 from any other subheading.
2910.10-2910.90..................................... A change to subheading 2910.10 through 2910.90 from any
other subheading, including another subheading within
that group.
2911................................................ A change to heading 2911 from any other heading.
2912.11-2912.13..................................... A change to subheading 2912.11 through 2812.13 from any
other subheading, including another subheading within
that group.
2912.19-2912.49..................................... A change to subheading 2912.19 through 2912.49 from any
other subheading, including another subheading within
that group, except from subheading 3301.90.
2912.50-2912.60..................................... A change to subheading 2912.50 through 2912.60 from any
other subheading, including another subheading within
that group.
2913................................................ A change to heading 2913 from any other heading.
2914.11-2914.19..................................... A change to subheading 2914.11 through 2914.19 from any
other subheading, including another subheading within
that group, except from subheading 3301.90.
2914.21-2914.22..................................... A change to subheading 2914.21 through 2914.22 from any
other subheading, including another subheading within
that group.
2914.23............................................. A change to subheading 2914.23 from any other subheading,
except from subheading 3301.90.
2914.29............................................. A change to subheading 2914.29 from any other subheading,
except from subheading 3301.90 or 3805.90.
2914.31-2914.39..................................... A change to subheading 2914.31 through 2914.39 from any
other subheading outside that group, except from
subheading 3301.90.
2914.40-2914.70..................................... A change to subheading 2914.40 through 2914.70 from any
other subheading, including another subheading within
that group, except from subheading 3301.90.
2915.11-2915.35..................................... A change to subheading 2915.11 through 2915.35 from any
other subheading, including another subheading within
that group.
2915.39............................................. A change to subheading 2915.39 from any other subheading,
except from subheading 3301.90.
2915.40-2915.90..................................... A change to subheading 2915.40 through 2915.90 from any
other subheading, including another subheading within
that group.
2916.11-2916.20..................................... A change to subheading 2916.11 through 2916.20 from any
other subheading, including another subheading within
that group.
2916.31-2916.39..................................... A change to subheading 2916.31 through 2916.39 from any
other subheading, including another subheading within
that group, except from subheading 3301.90.
2917.11-2917.39..................................... A change to subheading 2917.11 through 2917.39 from any
other subheading, including another subheading within
that group.
2918.11-2918.22..................................... A change to subheading 2918.11 through 2918.22 from any
other subheading, including another subheading within
that group.
2918.23............................................. A change to subheading 2918.23 from any other subheading,
except from subheading 3301.90.
2918.29-2918.30..................................... A change to subheading 2918.29 through 2918.30 from any
other subheading, including another subheading within
that group.
2918.90............................................. A change to subheading 2918.90 from any other subheading,
except from heading 3301.90.
2919................................................ A change to heading 2919 from any other heading.
2920.10-2926.90..................................... A change to subheading 2920.10 through 2926.90 from any
other subheading, including another subheading within
that group.
2927-2928........................................... A change to heading 2927 through 2928 from any other
heading, including another heading within that group.
2929.10-2930.90..................................... A change to subheading 2929.10 through 2930.90 from any
other subheading, including another subheading within
that group.
2931................................................ A change to heading 2931 from any other heading.
2932.11-2932.99..................................... A change to subheading 2932.11 through 2932.99 from any
other subheading, including another subheading within
that group, except from subheading 3301.90.
2933.11-2934.90..................................... A change to subheading 2933.11 through 2934.90 from any
other subheading, including another subheading within
that group.
2935................................................ A change to heading 2935 from any other heading.
2936.10-2936.29..................................... A change to subheading 2936.10 through 2936.29 from any
other subheading, including another subheading within
that group.
2936.90............................................. A change to subheading 2936.90 from any other subheading,
except from subheading 2936.10 through 2936.29.
2937-2941........................................... A change to heading 2937 through 2941 from any other
heading, including another heading within that group.
2942................................................ A change to heading 2942 from any other chapter.
3001.10............................................. A change to subheading 3001.10 from any other subheading,
except from subheading 0206.10 through 0208.90 or
0305.20, heading 0504 or 0510, or subheading 0511.99 if
the change from these provisions is not to a powder
classified in subheading 3001.10.
3001.20-3001.90..................................... A change to subheading 3001.20 through 3001.90 from any
other subheading, including another subheading within
that group.
3002.10-3002.90..................................... A change to subheading 3002.10 through 3002.90 from any
other subheading, including another subheading within
that group.
3002.90............................................. A change to subheading 3002.90 from any other subheading.
3003.10............................................. A change to subheading 3003.10 from any other subheading,
except from subheading 2941.10, 2941.20, or 3003.20.
3003.20............................................. A change to subheading 3003.20 from any other subheading,
except from subheading 2941.30 through 2941.90.
3003.31............................................. A change to subheading 3003.31 from any other subheading,
except from subheading 2937.91.
[[Page 28964]]
3003.39............................................. A change to subheading 3003.39 from any other subheading,
except from hormones or their derivatives classified in
Chapter 29.
3003.40............................................. A change to subheading 3003.40 from any other subheading,
except from heading 1211, subheading 1302.11, 1302.19,
1302.20, or 1302.39 or alkaloids or derivatives thereof
classified in Chapter 29.
3003.90............................................. A change to subheading 3003.90 from any other subheading,
provided that the domestic content of the therapeutic or
prophylactic component is no less than 40 percent by
weight of the total therapeutic or prophylactic content.
3004.10............................................. A change to subheading 3004.10 from any other subheading,
except from subheading 2941.10, 2941.20, 3003.10, or
3003.20.
3004.20............................................. A change to subheading 3004.20 from any other subheading,
except from subheading 2941.30 through 2941.90 or
3003.20.
3004.31............................................. A change to subheading 3004.31 from any other subheading,
except from subheading 2937.91, 3003.31, or 3003.39.
3004.32............................................. A change to subheading 3004.32 from any other subheading,
except from subheading 3003.39 or adrenal cortical
hormones classified in Chapter 29.
3004.39............................................. A change to subheading 3004.39 from any other subheading,
except from subheading 3003.39 or hormones or derivatives
thereof classified in Chapter 29.
3004.40............................................. A change to subheading 3004.40 from any other subheading,
except from heading 1211, subheading 1302.11, 1302.19,
1302.20, 1302.39, or 3003.40 or alkaloids or derivatives
thereof classified in Chapter 29.
3004.50............................................. A change to subheading 3004.50 from any other subheading,
except from subheading 3003.90 or vitamins classified in
Chapter 29 or products classified in heading 2936.
3004.90............................................. A change to subheading 3004.90 from any other subheading,
except from subheading 3003.90, and provided that the
domestic content of the therapeutic or prophylactic
component is no less than 40 percent by weight of the
total therapeutic or prophylactic content.
3005.10............................................. A change to subheading 3005.10 from any other subheading.
3006.10............................................. A change to subheading 3006.10 from any other subheading,
except from subheading 1212.20 or 4206.10.
3006.20-3006.60..................................... A change to subheading 3006.20 through 3006.60 from any
other subheading, including another subheading within
that group.
3101................................................ A change to heading 3101 from any other heading, except
from subheading 2301.20 or from powders and meals of
subheading 0506.90, heading 0508, or subheading 0511.91
or 0511.99.
3102.10-3102.21..................................... A change to subheading 3102.10 through 3102.21 from any
other subheading, including another subheading within
that group.
3102.29............................................. A change to subheading 3102.29 from any other subheading,
except from subheading 3102.21 or 3102.30.
3102.30............................................. A change to subheading 3102.30 from any other subheading.
3102.40............................................. A change to subheading 3102.40 from any other subheading,
except from subheading 3102.30.
3102.50............................................. A change to subheading 3102.50 from any other subheading.
3102.60............................................. A change to subheading 3102.60 from any other subheading,
except from subheading 2834.29 or 3102.30.
3102.70............................................. A change to subheading 3102.70 from any other subheading.
3102.80............................................. A change to subheading 3102.80 from any other subheading,
except from subheading 3102.10 or 3102.30.
3102.90............................................. A change to subheading 3102.90 from any other subheading,
except from subheading 3102.10 through 3102.80.
3103.10-3103.20..................................... A change to subheading 3103.10 through 3103.20 from any
other subheading, including another subheading within
that group.
3103.90............................................. A change to subheading 3103.90 from any other subheading,
except from subheading 3103.10 or 3103.20.
3104.10-3104.30..................................... A change to subheading 3104.10 through 3104.30 from any
other subheading, including another subheading within
that group.
3104.90............................................. A change to subheading 3104.90 from any other subheading,
except from subheading 3104.10 through 3104.30.
3105.10............................................. A change to subheading 3105.10 from any other subheading,
except from Chapter 31.
3105.20............................................. A change to subheading 3105.20 from any other heading,
except from heading 3102 through 3104.
3105.30-3105.40..................................... A change to subheading 3105.30 through 3105.40 from any
other subheading, including another subheading within
that group.
3105.51-3105.59..................................... A change to subheading 3105.51 through 3105.59 from any
other subheading, including another subheading within
that group, except from subheading 3102.10 through
3103.90 or 3105.30 through 3105.40.
3105.60............................................. A change to subheading 3105.60 from any other subheading,
except from heading 3103 through 3104.
3105.90............................................. A change to subheading 3105.90 from any other chapter,
except from subheading 2834.21.
3201.10-3202.90..................................... A change to subheading 3201.10 through 3202.90 from any
other subheading, including another subheading within
that group.
3203................................................ A change to heading 3203 from any other heading.
3204.11-3204.17..................................... A change to subheading 3204.11 through 3204.17 from any
other subheading, including another subheading within
that group.
3204.19............................................. A change to subheading 3204.19 from any other subheading,
except from subheading 3204.11 through 3204.17.
3204.20-3204.90..................................... A change to subheading 3204.20 through 3204.90 from any
other subheading, including another subheading within
that group.
3205................................................ A change to heading 3205 from any other heading.
3206.11-3206.19..................................... A change to subheading 3206.11 through 3206.19 from any
other subheading outside that group.
3206.20-3209.90..................................... A change to subheading 3206.20 through 3209.90 from any
other subheading, including another subheading within
that group.
3210................................................ A change to heading 3210 from any other heading.
3211................................................ A change to heading 3211 from any other heading, except
from subheading 3806.20.
3212.10-3212.90..................................... A change to subheading 3212.10 through 3212.90 from any
other subheading, including another subheading within
that group.
3213................................................ A change to heading 3213 from any other heading.
3214.10-3214.90..................................... A change to subheading 3214.10 through 3214.90 from any
other subheading, including another subheading within
that group, except from subheading 3824.50.
3215................................................ A change to heading 3215 from any other heading.
[[Page 28965]]
3301.11-3301.90..................................... A change to subheading 3301.11 through 3301.90 from any
other subheading, including another subheading within
that group.
3302................................................ A change to heading 3302 from any other heading, except
from subheading 2106.90 or heading 2207, 2208, or 3301.
3303................................................ A change to heading 3303 from any other heading, except
from subheading 3302.90.
3304.10-3306.10..................................... A change to subheading 3304.10 through 3306.10 from any
other subheading, including another subheading within
that group.
3306.20............................................. A change to subheading 3306.20 from any other subheading,
except from Chapter 54.
3306.90-3307.90..................................... A change to subheading 3306.90 through 3307.90 from any
other subheading, including another subheading within
that group.
3401................................................ A change to heading 3401 from any other heading.
3402.11............................................. A change to subheading 3402.11 from any other subheading,
except from subheading 3817.10.
3402.12-3402.20..................................... A change to subheading 3402.11 through 3402.20 from any
other subheading, including another subheading within
that group.
3402.90............................................. A change to subheading 3402.90 from any other heading.
3403.11-3403.19..................................... A change to subheading 3403.11 through 3403.19 from any
other subheading, including another subheading within
that group, except from heading 2710 or 2712.
3403.91-3403.99..................................... A change to subheading 3403.91 through 3403.99 from any
other subheading, including another subheading within
that group.
3404.10-3404.20..................................... A change to subheading 3404.10 through 3404.20 from any
other subheading, including another subheading within
that group.
3404.90............................................. A change to subheading 3404.90 from any other subheading,
except from heading 1521 or subheading 2712.20 or
2712.90.
3405.10-3405.90..................................... A change to subheading 3405.10 through 3405.90 from any
other subheading, including another subheading within
that group.
3406-3407........................................... A change to heading 3406 through 3407 from any other
heading, including another heading within that group.
3501.10-3501.90..................................... A change to subheading 3501.10 through 3501.90 from any
other subheading, including another subheading within
that group.
3502.11-3502.19..................................... A change to subheading 3502.11 through 3502.19 from any
other subheading outside that group, except from heading
0407.
3502.20-3502.90..................................... A change to subheading 3502.20 through 3502.90 from any
other subheading, including another subheading within
that group.
3503-3504........................................... A change to heading 3503 through 3504 from any other
heading, including another heading within that group.
3505.10............................................. A change to subheading 3505.10 from any other subheading.
3505.20............................................. A change to subheading 3505.20 from any other subheading,
except from heading 1108.
3506.10............................................. A change to subheading 3506.10 from any other subheading,
except from heading 3503 or subheading 3501.90.
3506.91-3506.99..................................... A change to subheading 3506.91 through 3506.99 from any
other subheading, including another subheading within
that group.
3507................................................ A change to heading 3507 from any other heading.
3601-3606........................................... A change to heading 3601 through 3606 from any other
heading, including any other heading within that group.
3701-3703........................................... A change to heading 3701 through 3703 from any other
heading outside that group.
3704-3706........................................... A change to heading 3704 through 3706 from any other
heading, including another heading within that group.
3707.10-3707.90..................................... A change to subheading 3707.10 through 3707.90 from any
other subheading, including another subheading within
that group.
3801.10............................................. A change to subheading 3801.10 from any other subheading.
3801.20............................................. A change to subheading 3801.20 from any other subheading,
except from heading 2504 or subheading 3801.10.
3801.30............................................. A change to subheading 3801.30 from any other subheading.
3801.90............................................. A change to subheading 3801.90 from any other subheading,
except from heading 2504.
3802-3805........................................... A change to heading 3802 through 3805 from any other
heading, including another heading within that group.
3806.10-3806.90..................................... A change to subheading 3806.10 through 3806.90 from any
other subheading, including another subheading within
that group.
3807................................................ A change to heading 3807 from any other heading.
3808.10............................................. A change to subheading 3808.10 from any other subheading,
except from subheading 1302.14 or from any insecticide
classified in Chapter 28 or 29.
3808.20............................................. A change to subheading 3808.20 from any other subheading,
except from fungicides classified in Chapter 28 or 29.
3808.30............................................. A change to subheading 3808.30 from any other subheading,
except from herbicides, antisprouting products and plant-
growth regulators classified in Chapter 28 or 29; or
A change to a mixture of subheading 3808.30 from any other
subheading, provided that the mixture is made from two or
more active ingredients and a domestic active ingredient
constitutes no less than 40 percent by weight of the
total active ingredients.
3808.40............................................. A change to subheading 3808.40 from any other subheading.
3808.90............................................. A change to subheading 3808.90 from any other subheading,
except from rodenticides and other pesticides classified
in Chapter 28 or 29; or
A change to a mixture of subheading 3808.90 from any other
subheading, provided that the mixture is made from two or
more active ingredients and a domestic active ingredient
constitutes no less than 40 percent by weight of the
total active ingredients.
3809.10............................................. A change to subheading 3809.10 from any other subheading,
except from subheading 3505.10.
3809.91-3809.99..................................... A change to subheading 3809.91 through 3809.99 from any
other subheading, including another subheading within
that group.
3810-3816........................................... A change to heading 3810 through 3816 from any other
heading, including another heading within that group.
3817.10-3817.20..................................... A change to subheading 3817.10 through 3817.20 from any
other subheading, including another subheading within
that group, except from subheading 2902.90.
3818................................................ A change to heading 3818 from any other heading.
[[Page 28966]]
3819................................................ A change to heading 3819 from any other heading, except
from heading 2710.
3820................................................ A change to heading 3820 from any other heading, except
from subheading 2905.31.
3821................................................ A change to heading 3821 from any other heading.
3822................................................ A change to heading 3822 from any other heading, except
from subheading 3002.10 or 3502.90 or heading 3504.
3823.11-3823.13..................................... A change to subheading 3823.11 through 3823.13 from any
other subheading, including another subheading within
that group, except from heading 1520.
3823.19............................................. A change to subheading 3823.19 from any other subheading.
3823.70............................................. A change to subheading 3823.70 from any other subheading,
except from heading 1520.
3824.10............................................. A change to subheading 3824.10 from any other subheading,
except from heading 3505, subheading 3806.10 or 3806.20,
or heading 3903, 3905, 3906, 3909, 3911, or 3913.
3824.20............................................. A change to subheading 3824.20 from any other subheading.
3824.30............................................. A change to subheading 3824.30 from any other subheading,
except from heading 2849.
3824.40............................................. A change to subheading 3824.40 from any other subheading.
3824.50............................................. A change to subheading 3824.50 from any other subheading,
except from subheading 3214.90.
3824.60............................................. A change to subheading 3824.60 from any other subheading.
3824.71-3824.90..................................... A change to subheading 3824.71 through 3824.90 from any
other subheading, including another subheading within
that group, provided that no more than 60 percent by
weight of the good classified in this subheading is
attributable to one substance or compound.
----------------------------------------------------------------------------------------------------------------
(g) Section VII: Chapters 39 through 40
----------------------------------------------------------------------------------------------------------------
Chapter 39 Note: The country of origin of goods classified in subheadings 3921.12.15, 3921.13.15, and
3921.90.2550 shall be determined under the provisions of Sec. 102.21.
3901-3915........................................... A change to heading 3901 through 3915 from any other
heading, including another heading within that group,
provided that the domestic polymer content is no less
than 40 percent by weight of the total polymer content.
3916.10-3918.90..................................... A change to subheading 3916.10 through 3918.90 from any
other subheading, including another subheading within
that group.
3919.10-3919.90..................................... A change to subheading 3919.10 through 3919.90 from any
other subheading outside that group.
3920.10-3921.90..................................... A change to subheading 3920.10 through 3921.90 from any
other subheading, including another subheading within
that group.
3922-3926........................................... A change to heading 3922 through 3926 from any other
heading, including another heading within that group.
4001.10-4001.22..................................... A change to subheading 4001.10 through 4001.22 from any
other subheading, including another subheading within
that group.
4001.29............................................. A change to subheading 4001.29 from any other subheading,
except from subheading 4001.21 or 4001.22.
4001.30............................................. A change to subheading 4001.30 from any other subheading.
4002.11-4002.70..................................... A change to subheading 4002.11 through 4002.70 from any
other subheading, including another subheading within
that group.
4002.80-4002.99..................................... A change to subheading 4002.80 through 4002.99 from any
other subheading, including another subheading within
that group, provided that the domestic rubber content is
no less than 40 percent by weight of the total rubber
content.
4003-4004........................................... A change to heading 4003 through 4004 from any other
heading, including another heading within that group.
4005................................................ A change to heading 4005 from any other heading, except
from heading 4001 or 4002.
4006-4010........................................... A change to heading 4006 through 4010 from any other
heading, including another heading within that group.
4011.10-4012.90..................................... A change to subheading 4011.10 through 4012.90 from any
other subheading, including another subheading within
that group.
4013................................................ A change to heading 4013 from any other heading.
4014.10-4014.90..................................... A change to subheading 4014.10 through 4014.90 from any
other subheading, including another subheading within
that group.
4015................................................ A change to heading 4015 from any other heading.
4016.10-4016.99..................................... A change to subheading 4016.10 through 4016.99 from any
other subheading, including another subheading within
that group.
4017................................................ A change to heading 4017 from any other heading.
----------------------------------------------------------------------------------------------------------------
(h) Section VIII: Chapters 41 through 43
----------------------------------------------------------------------------------------------------------------
4101-4103........................................... A change to heading 4101 through 4103 from any other
chapter.
4104-4107........................................... A change to heading 4104 through 4107 from any other
heading, including another heading within that group.
4108-4111........................................... A change to heading 4108 through 4111 from any other
heading, including another heading within that group.
Chapter 42 Note: The country of origin of goods classified in subheadings 4202.12.40 through 4202.12.80,
4202.22.40 through 4202.22.80, 4202.32.40 through 4202.32.95, 4202.92.15 through 4202.92.30, and 4202.92.60
through 4202.92.90 shall be determined under the provisions of Sec. 102.21.
4201................................................ A change to heading 4201 from any other heading.
4202.11............................................. A change to subheading 4202.11 from any other heading.
4202.12-4202.22..................................... A change to subheading 4202.12 through 4202.22 from any
other heading, provided that the change does not result
from the assembly of foreign cut components.
4202.29............................................. A change to subheading 4202.29 from any other heading.
4202.31-4202.32..................................... A change to subheading 4202.31 through 4202.32 from any
other heading, provided that the change does not result
from the assembly of foreign cut components.
4202.39............................................. A change to subheading 4202.39 from any other heading.
4202.91-4202.99..................................... A change to subheading 4202.91 through 4202.99 from any
other heading, provided that the change does not result
from the assembly of foreign cut components.
4203-4206........................................... A change to heading 4203 through 4206 from any other
heading, including another heading within that group.
[[Page 28967]]
4301................................................ A change to heading 4301 from any other chapter.
4302.11-4302.20..................................... A change to subheading 4302.11 through 4302.20 from any
other heading.
4302.30............................................. A change to subheading 4302.30 from any other subheading,
provided that the change does not result from the
assembly of foreign cut fur components.
4303-4304........................................... A change to heading 4303 through 4304 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
(i) Section IX: Chapters 44 through 46
----------------------------------------------------------------------------------------------------------------
4401-4411........................................... A change to heading 4401 through 4411 from any other
heading, including another heading within that group.
4412................................................ A change to heading 4412 from any other heading; or
A change to surface-covered plywood of heading 4412 from
any other plywood that is not surface-covered or is
surface-covered only with a clear or transparent material
which does not obscure the grain, texture, or markings of
the face ply.
4413-4421........................................... A change to heading 4413 through 4421 from any other
heading, including another heading within that group.
4501................................................ A change to heading 4501 from any other heading.
4502................................................ A change to heading 4502 from any other heading, except
from heading 4501.
4503-4504........................................... A change to heading 4503 through 4504 from any other
heading, including another heading within that group.
4601................................................ A change to subheading 4601.10 through 4601.99 from any
other subheading, including another subheading within
that group.
4602................................................ A change to heading 4602 from any other heading.
----------------------------------------------------------------------------------------------------------------
(j) Section X: Chapters 47 through 49
----------------------------------------------------------------------------------------------------------------
4701-4702........................................... A change to heading 4701 through 4702 from any other
heading, including another heading within that group.
4703.11-4704.29..................................... A change to subheading 4703.11 through 4704.29 from any
other subheading, including another subheading within
that group.
4705-4707........................................... A change to heading 4705 through 4707 from any other
heading, including another heading within that group.
4801-4807........................................... A change to heading 4801 through 4807 from any other
heading, including another heading within that group.
4808.10............................................. A change to subheading 4808.10 from any other heading.
4808.20-4808.30..................................... A change to subheading 4808.20 through 4808.30 from any
other heading, except from heading 4804.
4808.90............................................. A change to subheading 4808.90 from any other chapter.
4809................................................ A change to heading 4809 from any other heading.
4810................................................ A change to heading 4810 from any other heading.
4811.10-4811.31..................................... A change to subheading 4811.10 through 4811.31 from any
other heading.
4811.39............................................. A change to subheading 4811.39 from any other heading,
except from heading 4804.
4811.40-4811.90..................................... A change to subheading 4811.40 through 4811.90 from any
other heading.
4812-4814........................................... A change to heading 4812 through 4814 from any other
heading, including another heading within that group.
4815................................................ A change to heading 4815 from any other heading.
4816................................................ A change to heading 4816 from any other heading, except
from heading 4809.
4817-4822........................................... A change to heading 4817 through 4822 from any other
heading, including another heading within that group.
4823.11............................................. A change to subheading 4823.11 from any other subheading.
4823.19............................................. A change to subheading 4823.19 from any other subheading.
4823.20-4823.59..................................... A change to subheading 4823.20 through 4823.59 from any
other chapter.
4823.60-4823.70..................................... A change to subheading 4823.60 through 4823.70 from any
other subheading, including another subheading within
that group.
4823.90............................................. A change to a good of subheading 4823.90, other than to
cards not punched and for punchcard machines, from any
other subheading; or
A change to cards not punched and for punchcard machines
of subheading 4823.90 from any other chapter.
4901-4911........................................... A change to heading 4901 through 4911 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
(k) Section XII: Chapters 64 through 67
----------------------------------------------------------------------------------------------------------------
Chapter 64 Note: For purposes of this chapter, the term ``formed uppers'' means uppers, with closed bottoms,
which have been shaped by lasting, molding or otherwise but not by simply closing at the bottom. The country of
origin of goods classified in subheadings 6405.20.60, 6406.10.77, 6406.10.90, and 6406.99.15 shall be determined
under the provisions of Sec. 102.21.
6401-6405........................................... A change to heading 6401 through 6405 from any other
heading outside that group, except from formed uppers.
6406.10............................................. A change to subheading 6406.10 from any other subheading.
6406.20-6406.99..................................... A change to subheading 6406.20 through 6406.99 from any
other chapter.
6505.10............................................. A change to subheading 6505.10 from any other subheading.
6506................................................ A change to heading 6506 from any other heading, except
from heading 6501 through 6502; or
A change to heading 6506 from heading 6501 by means of a
blocking process; or
A change to heading 6506 from heading 6502, provided that
the change is the result of at least three processing
steps (e.g. dyeing, blocking, trimming, or adding a
sweatband).
6507................................................ A change to heading 6507 from any other heading.
6602................................................ A change to heading 6602 from any other heading.
6603.10............................................. A change to subheading 6603.10 from any other heading.
6603.20............................................. A change to subheading 6603.20 from any other heading; or
A change to subheading 6603.20 from subheading 6603.90,
except when that change is pursuant to General Rule of
Interpretation 2(a).
6603.90............................................. A change to subheading 6603.90 from any other heading.
6701................................................ A change to heading 6701 from any other heading; or
A change to articles of feather or down of heading 6701
from feathers or down.
[[Page 28968]]
6702-6704........................................... A change to heading 6702 through 6704 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
(l) Section XIII: Chapters 68 through 70
----------------------------------------------------------------------------------------------------------------
6801-6808........................................... A change to heading 6801 through 6808 from any other
heading, including another heading within that group.
6809.11............................................. A change to subheading 6809.11 from any other heading.
6809.19............................................. A change to subheading 6809.19 from any other heading.
6809.90............................................. A change to subheading 6809.90 from any other subheading.
6810.11-6810.19..................................... A change to subheading 6810.11 through 6810.19 from any
other heading.
6810.91............................................. A change to subheading 6810.91 from any other subheading.
6810.99............................................. A change to subheading 6810.99 from any other heading.
6811.10............................................. A change to subheading 6811.10 from any other heading.
6811.20............................................. A change to subheading 6811.20 from any other heading.
6811.30............................................. A change to subheading 6811.30 from any other heading.
6811.90............................................. A change to subheading 6811.90 from any other heading.
6812.10............................................. A change to subheading 6812.10 from any other heading.
6812.20............................................. A change to subheading 6812.20 from any other subheading.
6812.30............................................. A change to subheading 6812.30 from any other subheading,
except from subheading 6812.20.
6812.40............................................. A change to subheading 6812.40 from any other subheading.
6812.50............................................. A change to subheading 6812.50 from any other subheading.
6812.60-6812.70..................................... A change to subheading 6812.60 through 6812.70 from any
other subheading outside that group.
6812.90............................................. A change to subheading 6812.90 from any other heading.
6813................................................ A change to heading 6813 from any other heading.
6814.10............................................. A change to subheading 6814.10 from any other heading.
6814.90............................................. A change to subheading 6814.90 from any other heading.
6815.10-6815.99..................................... A change to subheading 6815.10 through 6815.99 from any
other subheading, including another subheading within
that group.
6901-6914........................................... A change to heading 6901 through 6914 from any other
chapter.
Chapter 70 Note: The country of origin of goods classified in subheadings 7019.19.15 and 7019.19.28 shall be
determined under the provisions of Sec. 102.21.
7001................................................ A change to heading 7001 from any other heading.
7002................................................ A change to heading 7002 from any other heading.
7003-7006........................................... A change to heading 7003 through 7006 from any other
heading outside that group.
7007................................................ A change to heading 7007 from any other heading.
7008................................................ A change to heading 7008 from any other heading.
7009.10............................................. A change to subheading 7009.10 from any other subheading.
7009.91-7009.92..................................... A change to subheading 7009.91 through 7009.92 from any
other heading.
7010................................................ A change to heading 7010 from any other heading.
7011................................................ A change to heading 7011 from any other heading, except
from subheading 7003.30.
7012-7018........................................... A change to heading 7012 through 7018 from any other
heading, including another heading within that group; or
A change from uncut and unpolished glassware blanks
classified in heading 7013 to cut and polished glassware
classified in heading 7013, provided that there has been
a substantial amount of both cutting and polishing
operations in a single country.
7019.11-7019.19..................................... A change to subheading 7019.11 through 7019.19 from any
other heading.
7019.31-7019.32..................................... A change to subheading 7019.31 through 7019.32 from any
other subheading outside that group.
7019.39............................................. A change to subheading 7019.39 from any other subheading.
7019.40-7019.59..................................... A change to subheading 7019.40 through 7019.59 from any
other subheading outside that group.
7019.90............................................. A change to subheading 7019.90 from any other heading.
7020................................................ A change to heading 7020 from any other heading, except
from heading 7010 through 7018.
----------------------------------------------------------------------------------------------------------------
(m) Section XIV: Chapter 71
----------------------------------------------------------------------------------------------------------------
7101................................................ A change to heading 7101 from any other heading, except
from heading 0307.
7102-7103........................................... A change to heading 7102 through 7103 from any other
chapter.
7104-7105........................................... A change to heading 7104 through 7105 from any other
heading, including another heading within that group.
7106................................................ A change to heading 7106 from any other chapter.
7107................................................ A change to heading 7107 from any other chapter, except
from Chapter 72 through 76 or Chapter 78 through 83.
7108................................................ A change to heading 7108 from any other chapter.
7109................................................ A change to heading 7109 from any other chapter, except
from Chapter 72 through 76 or Chapter 78 through 83.
7110................................................ A change to heading 7110 from any other chapter.
7111................................................ A change to heading 7111 from any other chapter, except
from Chapter 72 through 76 or Chapter 78 through 83.
7112................................................ A change to heading 7112 from any other heading.
7113.11-7115.90..................................... A change to subheading 7113.11 through 7115.90 from any
other subheading, including another subheading within
that group.
7116................................................ A change to heading 7116 from any other heading, except
that pearls strung but without the addition of clasps or
other ornamental features of precious metals or stones,
shall have the origin of the pearls.
7117-7118........................................... A change to heading 7117 through 7118 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
(n) Section XV: Chapters 72 through 83
----------------------------------------------------------------------------------------------------------------
Chapter 72 Note: Notwithstanding the specific rules of this chapter, hot-rolled flat-rolled steel which is
cold-reduced (by cold rolling) shall be treated as a good of the country in which the cold-rolled steel is
produced.
[[Page 28969]]
7201-7206........................................... A change to heading 7201 through 7206 from any other
heading, including another heading within that group.
7207................................................ A change to heading 7207 from any other heading, except
from heading 7206.
7208................................................ A change to heading 7208 from any other heading.
7209................................................ A change to heading 7209 from any other heading, except
from heading 7208 or 7211.
7210................................................ A change to heading 7210 from any other heading, except
from heading 7208 through 7212.
7211................................................ A change to heading 7211 from any other heading, except
from heading 7208 through 7209.
7212................................................ A change to heading 7212 from any other heading, except
from heading 7208 through 7211.
7213................................................ A change to heading 7213 from any other heading.
7214................................................ A change to heading 7214 from any other heading, except
from heading 7213.
7215................................................ A change to heading 7215 from any other heading, except
from heading 7213 through 7214.
7216................................................ A change to heading 7216 from any other heading, except
from heading 7208 through 7215.
7217................................................ A change to heading 7217 from any other heading, except
from heading 7213 through 7215.
7218................................................ A change to heading 7218 from any other heading.
7219-7220........................................... A change to heading 7219 through 7220 from any other
heading outside that group.
7221-7222........................................... A change to heading 7221 through 7222 from any other
heading outside that group.
7223................................................ A change to heading 7223 from any other heading, except
from heading 7221 through 7222.
7224................................................ A change to heading 7224 from any other heading.
7225-7226........................................... A change to heading 7225 through 7226 from any other
heading outside that group.
7227-7228........................................... A change to heading 7227 through 7228 from any other
heading outside that group.
7229................................................ A change to heading 7229 from any other heading, except
from heading 7227 through 7228.
7301-7307........................................... A change to heading 7301 through 7307 from any other
heading, including another heading within that group.
7308................................................ A change to heading 7308 from any other heading, except
for changes resulting from the following processes
performed on angles, shapes, or sections classified in
heading 7216:
(a) drilling, punching, notching, cutting, cambering, or
sweeping, whether performed individually or in
combination;
(b) adding attachments or weldments for composite
construction;
(c) adding attachments for handling purposes;
(d) adding weldments, connectors or attachments to H-
sections or I-sections; provided that the maximum
dimension of the weldments, connectors, or attachments is
not greater than the dimension between the inner surfaces
of the flanges of the H-sections or I-sections;
(e) painting, galvanizing, or otherwise coating; or
(f) adding a simple base plate without stiffening
elements, individually or in combination with drilling,
punching, notching, or cutting, to create an article
suitable as a column.
7309-7314........................................... A change to heading 7309 through 7314 from any other
heading, including another heading within that group.
7315.11-7315.12..................................... A change to subheading 7315.11 through 7315.12 from any
other heading; or
A change to subheading 7315.11 through 7315.12 from
subheading 7315.19 or 7315.90, except when that change is
pursuant to General Rule of Interpretation 2(a).
7315.19............................................. A change to subheading 7315.19 from any other subheading.
7315.20-7315.89..................................... A change to subheading 7315.20 through 7315.89 from any
other heading; or
A change to subheading 7315.20 through 7315.89 from
subheading 7315.90, except when that change is pursuant
to General Rule of Interpretation 2(a).
7315.90............................................. A change to subheading 7315.90 from any other subheading.
7316................................................ A change to heading 7316 from any other heading, except
from heading 7312 or 7315.
7317-7318........................................... A change to heading 7317 through 7318 from any other
heading, including another heading within that group.
7319................................................ A change to heading 7319 from any other heading.
7320................................................ A change to heading 7320 from any other heading.
7321.11-7321.83..................................... A change to subheading 7321.11 through 7321.83 from any
other heading; or
A change to subheading 7321.11 through 7321.83 from
heading 7321.90, except when that change is pursuant to
General Rule of Interpretation 2(a).
7321.90............................................. A change to subheading 7321.90 from any other heading.
7322-7323........................................... A change to heading 7322 through 7323 from any other
heading, including another heading within that group.
7324.10-7324.29..................................... A change to subheading 7324.10 through 7324.29 from any
other subheading, including another subheading within
that group.
7324.90............................................. A change to subheading 7324.90 from any other subheading.
7325-7326........................................... A change to heading 7325 through 7326 from any other
heading, including another heading within that group.
7401-7407........................................... A change to heading 7401 through 7407 from any other
heading, including another heading within that group.
7408................................................ A change to heading 7408 from any other heading, except
from heading 7407.
7409................................................ A change to heading 7409 from any other heading.
7410................................................ A change to heading 7410 from any other heading, except
from plate, sheet, or strip classified in heading 7409 of
a thickness less than 5mm.
7411-7418........................................... A change to heading 7411 through 7418 from any other
heading, including another heading within that group.
7419.10-7419.99..................................... A change to subheading 7419.10 through 7419.99 from any
other subheading, including another subheading within
that group.
7501................................................ A change to heading 7501 from any other heading.
7502................................................ A change to heading 7502 from any other heading.
7503................................................ A change to heading 7503 from any other heading.
7504................................................ A change to heading 7504 from any other heading.
7505................................................ A change to heading 7505 from any other heading.
7506................................................ A change to heading 7506 from any other heading; or
A change to foil, not exceeding 0.15 mm in thickness, from
any other good of heading 7506, provided that there has
been a reduction in thickness of no less than 50 percent.
7507.11-7508.90..................................... A change to subheading 7507.11 through 7508.90 from any
other subheading, including another subheading within
that group.
7601-7604........................................... A change to heading 7601 through 7604 from any other
heading, including another heading within that group.
7605................................................ A change to heading 7605 from any other heading, except
from heading 7604.
[[Page 28970]]
7606-7615........................................... A change to heading 7606 through 7615 from any other
heading, including another heading within that group.
7616.10-7616.99..................................... A change to subheading 7616.10 through 7616.99 from any
other subheading, including another subheading within
that group.
7801-7803........................................... A change to heading 7801 through 7803 from any other
heading, including another heading within that group.
7804.11-7804.20..................................... A change to subheading 7804.11 through 7804.20 from any
other subheading, including another subheading within
that group; or
A change to any of the following goods classified in
subheading 7804.11 through 7804.20, including from
materials also classified in subheading 7804.11 through
7804.20: powder except from flakes; flakes except from
powder; plates except from sheets or strip; sheets except
from plate or strip; strip except from sheets or plate.
7805-7806........................................... A change to heading 7805 through 7806 from any other
heading, including another heading within that group; or
A change to any of the following goods classified in
heading 7805 through 7806, including from materials also
classified in heading 7805 through 7806: tubes except
from pipes; pipes except from tubes; tube or pipe
fittings except from tubes or pipes; cables/stranded wire/
plaited bands.
7901-7906........................................... A change to heading 7901 through 7906 from any other
heading, including another heading within that group; or
A change to any of the following goods classified in
heading 7901 through 7906, including from materials also
classified in heading 7901 through 7906: Matte;
unwrought; powder except from flakes; flakes except from
powder; bars except from rods or profiles; rods except
from bars or profiles; profiles except from rods or bars;
wire except from rod; plates except from sheets or strip;
sheets except from plate or strip; strip except from
sheets or plate; foil except from sheet or strip; tubes
except from pipes; pipes except from tubes; tube or pipe
fittings except from tubes or pipes.
7907................................................ A change to heading 7907 from any other heading.
8001................................................ A change to heading 8001 from any other heading.
8002-8004........................................... A change to heading 8002 through 8004 from any other
heading, including another heading within that group; or
A change to any of the following goods classified in
heading 8002 through 8004, including from materials also
classified in heading 8002 through 8004: Bars except from
rods or profiles; rods except from bars or profiles;
profiles except from rods or bars; wire except from rod;
plates except from sheets or strip; sheets except from
plate or strip; strip except from sheets or plate.
8005................................................ A change to heading 8005 from any other heading; or
A change to foil of heading 8005 from powder or flakes of
that heading; or
A change to powder of heading 8005 from foil of that
heading; or
A change to flakes of heading 8005 from foil of that
heading.
8006-8007........................................... A change to heading 8006 through 8007 from any other
heading, including another heading within that group; or
A change to any of the following goods classified in
heading 8006 through 8007, including from materials also
classified in heading 8006 through 8007: Tubes except
from pipes; pipes except from tubes; tube or pipe
fittings except from tubes or pipes; cables/stranded wire/
plaited bands.
Chapter 81 Note: Waste and scrap are products of the country in which they are collected.
8101.10-8101.92..................................... A change to subheading 8101.10 through 8101.92 from any
other subheading, including another subheading within
that group; or
A change to any of the following goods classified in
subheading 8101.10 through 8101.92, including from
materials also classified in subheading 8101.10 through
8101.92: Matte; unwrought; bars except from rods or
profiles; rods except from bars or profiles; profiles
except from rods or bars; plates except from sheets or
strip; sheets except from plate or strip; strip except
from sheets or plate; foil except from sheet or strip.
8101.93............................................. A change to subheading 8101.93 from any other subheading,
except from subheading 8101.92.
8101.99............................................. A change to subheading 8101.99 from any other subheading;
or
A change to any of the following goods classified in
subheading 8101.99, including from materials also
classified in subheading 8101.99: Tubes except from
pipes; pipes except from tubes; tube or pipe fittings
except from tubes or pipes; cables/stranded wire/plaited
bands.
8102.10-8102.92..................................... A change to subheading 8102.10 through 8102.92 from any
other subheading, including another subheading within
that group; or
A change to any of the following goods classified in
subheading 8102.10 through 8102.92, including from
materials also classified in subheading 8102.10 through
8102.92: Matte; unwrought; bars except from rods or
profiles; rods except from bars or profiles; profiles
except from rods or bars; plates except from sheets or
strip; sheets except from plate or strip; strip except
from sheets or plate; foil except from sheet or strip.
8102.93............................................. A change to subheading 8102.93 from any other subheading,
except from subheading 8102.92.
8102.99............................................. A change to subheading 8102.99 from any other subheading.
8103.10-8113.00..................................... A change to subheading 8103.10 through 8113.00 from any
other subheading, including another subheading within
that group; or
A change to any of the following goods classified in
subheading 8103.10 through 8113.00, including from
materials also classified in subheading 8103.10 through
8113.00: Matte; unwrought; powder except from flakes;
flakes except from powder; bars except from rods or
profiles; rods except from bars or profiles; profiles
except from rods or bars; wire except from rod; plates
except from sheets or strip; sheets except from plate or
strip; strip except from sheets or plate; foil except
from sheet or strip; tubes except from pipes; pipes
except from tubes; tube or pipe fittings except from
tubes or pipes; cables/stranded wire/plaited bands.
8201.10-8202.40..................................... A change to subheading 8201.10 through 8202.40 from any
other subheading, including another subheading within
that group.
8202.91............................................. A change to subheading 8202.91 from any other subheading,
except from subheading 8202.99.
8202.99............................................. A change to subheading 8202.99 from any other heading.
8203.10-8207.90..................................... A change to subheading 8203.10 through 8207.90 from any
other subheading, including another subheading within
that group.
8208-8215........................................... A change to heading 8208 through 8215 from any other
heading, including another heading within that group.
8301.10-8301.50..................................... A change to subheading 8301.10 through 8301.50 from any
other subheading, including another subheading within
that group, except from subheading 8301.60 when that
change is pursuant to General Rule of Interpretation
2(a).
[[Page 28971]]
8301.60-8301.70..................................... A change to subheading 8301.60 through 8301.70 from any
other chapter.
8302.10-8302.60..................................... A change to subheading 8302.10 through 8302.60 from any
other subheading, including another subheading within
that group.
8303-8304........................................... A change to heading 8303 through 8304 from any other
heading, including another heading within that group.
8305.10-8305.90..................................... A change to subheading 8305.10 through 8305.90 from any
other subheading, including another subheading within
that group.
8306-8307........................................... A change to heading 8306 through 8307 from any other
heading, including another heading within that group.
8308.10-8308.90..................................... A change to subheading 8308.10 through 8308.90 from any
other subheading, including another subheading within
that group.
8309-8310........................................... A change to heading 8309 through 8310 from any other
heading, including another heading within that group.
8311.10-8311.90..................................... A change to subheading 8311.10 through 8311.90 from any
other subheading, including another subheading within
that group.
----------------------------------------------------------------------------------------------------------------
(o) Section XVI: Chapters 84 through 85
----------------------------------------------------------------------------------------------------------------
Note: Tariff changes within Chapters 84 and 85 which occur only as a result of the application of General Rule
of Interpretation 2(a) of the HTSUS shall not be sufficient to confer origin.
8401.10............................................. A change to subheading 8401.10 from any other subheading.
8401.20............................................. A change to subheading 8401.20 from any other subheading;
or
A change to completed machinery and apparatus classified
in subheading 8401.20 from parts classified in subheading
8401.20.
8401.30............................................. A change to subheading 8401.30 from any other subheading.
8401.40............................................. A change to subheading 8401.40 from any other heading.
8402.11-8402.12..................................... A change to subheading 8402.11 through 8402.12 from any
other subheading outside that group.
8402.19-8402.20..................................... A change to subheading 8402.19 through 8402.20 from any
other subheading, including another subheading within
that group.
8402.90............................................. A change to subheading 8402.90 from any other heading,
except from heading 7303, 7304, 7305, or 7306 unless the
change from these headings involves bending to shape.
8403.10............................................. A change to subheading 8403.10 from any other subheading.
8403.90............................................. A change to subheading 8403.90 from any other heading.
8404.10-8404.20..................................... A change to subheading 8404.10 through 8404.20 from any
other subheading, including another subheading within
that group.
8404.90............................................. A change to subheading 8404.90 from any other heading.
8405.10............................................. A change to subheading 8405.10 from any other subheading.
8405.90............................................. A change to subheading 8405.90 from any other heading.
8406.10............................................. A change to subheading 8406.10 from any other subheading.
8406.81-8406.82..................................... A change to subheading 8406.81 through 8406.82 from any
other subheading outside that group.
8406.90............................................. A change to subheading 8406.90 from any other heading.
8407................................................ A change to heading 8407 from any other heading.
8408................................................ A change to heading 8408 from any other heading.
8409.10............................................. A change to subheading 8409.10 from any other heading.
8409.91-8409.99..................................... A change to subheading 8409.91 through 8409.99 from any
other heading, except a change resulting from a simple
assembly.
8410.11-8410.13..................................... A change to subheading 8410.11 through 8410.13 from any
other subheading outside that group.
8410.90............................................. A change to subheading 8410.90 from any other heading.
8411.11-8411.82..................................... A change to subheading 8411.11 through 8411.82 from any
other subheading outside that group.
8411.91-8411.99..................................... A change to subheading 8411.91 through 8411.99 from any
other heading.
8412.10-8412.80..................................... A change to subheading 8412.10 through 8412.80 from any
other subheading, including another subheading within
that group.
8412.90............................................. A change to subheading 8412.90 from any other heading.
8413.11-8413.82..................................... A change to subheading 8413.11 through 8413.82 from any
other subheading, including another subheading within
that group.
8413.91............................................. A change to subheading 8413.91 from any other heading.
8413.92............................................. A change to subheading 8413.92 from any other heading.
8414.10-8414.80..................................... A change to subheading 8414.10 through 8414.80 from any
other subheading, including another subheading within
that group.
8414.90............................................. A change to subheading 8414.90 from any other heading.
8415.10-8415.83..................................... A change to subheading 8415.10 through 8415.83 from any
subheading, including another subheading within that
group, except a change within that group resulting from a
simple assembly.
8415.90............................................. A change to subheading 8415.90 from any other subheading,
except from heading 7411, 7608, 8414, 8501, or 8535
through 8537 when resulting from a simple assembly.
8416.10-8416.30..................................... A change to subheading 8416.10 through 8416.30 from any
other subheading, including another subheading within
that group.
8416.90............................................. A change to subheading 8416.90 from any other heading.
8417.10-8417.80..................................... A change to subheading 8417.10 through 8417.80 from any
other subheading, including another subheading within
that group.
8417.90............................................. A change to subheading 8417.90 from any other heading.
8418.10-8418.91..................................... A change to subheading 8418.10 through 8418.91 from any
other subheading, including another subheading within
that group.
8418.99............................................. A change to subheading 8418.99 from any other heading,
except from heading 7303, 7304, 7305, or 7306 unless the
change from these headings involves bending to shape.
8419.11-8419.89..................................... A change to subheading 8419.11 through 8419.89 from any
other subheading, including another subheading within
that group.
[[Page 28972]]
8419.90............................................. A change to subheading 8419.90 from any other heading,
except from heading 7303, 7304, 7305, or 7306 unless the
change from these headings involves bending to shape, and
except from heading 8501 when resulting from a simple
assembly.
8420.10............................................. A change to subheading 8420.10 from any other subheading.
8420.91............................................. A change to subheading 8420.91 from any other heading.
8420.99............................................. A change to subheading 8420.99 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8421.11-8421.39..................................... A change to subheading 8421.11 through 8421.39 from any
other subheading, including another subheading within
that group.
8421.91............................................. A change to subheading 8421.91 from any other heading.
8421.99............................................. A change to subheading 8421.99 from any other heading.
8422.11-8422.40..................................... A change to subheading 8422.11 through 8422.40 from any
other subheading, including another subheading within
that group.
8422.90............................................. A change to subheading 8422.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8423.10-8423.89..................................... A change to subheading 8423.10 through 8423.89 from any
other subheading, including another subheading within
that group.
8423.90............................................. A change to subheading 8423.90 from any other heading.
8424.10-8424.89..................................... A change to subheading 8424.10 through 8424.89 from any
other subheading, including another subheading within
that group.
8424.90............................................. A change to subheading 8424.90 from any other heading,
except from subheading 8414.40 or 8414.80.
8425.11-8430.69..................................... A change to subheading 8425.11 through 8430.69 from any
other subheading, including another subheading within
that group.
8431................................................ A change to heading 8431 from any other heading, except
from heading 8501 when resulting from a simple assembly.
8432.10-8432.80..................................... A change to subheading 8432.10 through 8432.80 from any
other subheading, including another subheading within
that group.
8432.90............................................. A change to subheading 8432.90 from any other heading.
8433.11-8433.60..................................... A change to subheading 8433.11 through 8433.60 from any
other subheading, including another subheading within
that group.
8433.90............................................. A change to subheading 8433.90 from any other heading,
except from heading 8407 or 8408 when resulting from a
simple assembly.
8434.10-8434.20..................................... A change to subheading 8434.10 through 8434.20 from any
other subheading, including another subheading within
that group.
8434.90............................................. A change to subheading 8434.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8435.10............................................. A change to subheading 8435.10 from any other subheading.
8435.90............................................. A change to subheading 8435.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8436.10-8436.80..................................... A change to subheading 8436.10 through 8436.80 from any
other subheading, including another subheading within
that group.
8436.91............................................. A change to subheading 8436.91 from any other heading.
8436.99............................................. A change to subheading 8436.99 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8437.10-8437.80..................................... A change to subheading 8437.10 through 8437.80 from any
other subheading, including another subheading within
that group.
8437.90............................................. A change to subheading 8437.90 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8438.10-8438.80..................................... A change to subheading 8438.10 through 8438.80 from any
other subheading, including another subheading within
that group.
8438.90............................................. A change to subheading 8438.90 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8439.10-8439.30..................................... A change to subheading 8439.10 through 8439.30 from any
other subheading, including another subheading within
that group.
8439.91............................................. A change to subheading 8439.91 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8439.99............................................. A change to subheading 8439.99 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8440.10............................................. A change to subheading 8440.10 from any other subheading.
8440.90............................................. A change to subheading 8440.90 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8441.10-8441.80..................................... A change to subheading 8441.10 through 8441.80 from any
other subheading, including another subheading within
that group.
8441.90............................................. A change to subheading 8441.90 from any other heading,
except from heading 8407, 8408, or 8501 when resulting
from a simple assembly.
8442.10-8442.30..................................... A change to subheading 8442.10 through 8442.30 from any
other subheading outside that group.
8442.40............................................. A change to subheading 8442.40 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8442.50............................................. A change to subheading 8442.50 from any other heading.
8443.11-8443.60..................................... A change to subheading 8443.11 through 8443.60 from any
other subheading outside that group.
8443.90............................................. A change to subheading 8443.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8444................................................ A change to heading 8444 from any other heading.
8445.11-8447.90..................................... A change to subheading 8445.11 through 8447.90 from any
other subheading outside that group.
[[Page 28973]]
8448.11-8448.19..................................... A change to subheading 8448.11 through 8448.19 from any
other subheading, including another subheading within
that group.
8448.20-8448.59..................................... A change to subheading 8448.20 through 8448.59 from any
other heading, except from heading 8501 when resulting
from a simple assembly.
8449................................................ A change to heading 8449 from any other heading.
8450.11-8450.20..................................... A change to subheading 8450.11 through 8450.20 from any
other subheading, including another subheading within
that group.
8450.90............................................. A change to subheading 8450.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8451.10-8451.80..................................... A change to subheading 8451.10 through 8451.80 from any
other subheading, including another subheading within
that group.
8451.90............................................. A change to subheading 8451.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8452.10-8452.29..................................... A change to subheading 8452.10 through 8452.29 from any
other subheading outside that group.
8452.30-8452.40..................................... A change to subheading 8452.30 through 8452.40 from any
other subheading, including another subheading within
that group.
8452.90............................................. A change to subheading 8452.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8453.10-8453.80..................................... A change to subheading 8453.10 through 8453.80 from any
other subheading, including another subheading within
that group.
8453.90............................................. A change to subheading 8453.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8454.10-8454.30..................................... A change to subheading 8454.10 through 8454.30 from any
other subheading, including another subheading within
that group.
8454.90............................................. A change to subheading 8454.90 from any other heading.
8455.10-8455.22..................................... A change to subheading 8455.10 through 8455.22 from any
other subheading, including another subheading within
that group.
8455.30............................................. A change to subheading 8455.30 from any other heading.
8455.90............................................. A change to subheading 8455.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8456.10-8456.99..................................... A change to subheading 8456.10 through 8456.99 from any
other heading.
8457.10............................................. A change to subheading 8457.10 from any other heading,
except from heading 8458 through 8465 when resulting from
a simple assembly.
8457.20-8465.99..................................... A change to subheading 8457.20 through 8465.99 from any
other heading, including another heading within that
group.
8466.10-8466.94..................................... A change to subheading 8466.10 through 8466.94 from any
other heading outside that group, except from heading
8501 when resulting from a simple assembly.
8467.11-8467.89..................................... A change to subheading 8467.11 through 8467.89 from any
other subheading, including another subheading within
that group.
8467.91-8467.99..................................... A change to subheading 8467.91 through 8467.99 from any
other heading, except from heading 8407.
8468.10-8468.80..................................... A change to subheading 8468.10 through 8468.80 from any
other subheading, including another subheading within
that group.
8468.90............................................. A change to subheading 8468.90 from any other heading.
8469.11-8469.12..................................... A change to subheading 8469.11 through 8469.12 from any
other subheading outside that group.
8469.20-8469.30..................................... A change to subheading 8469.20 through 8469.30 from any
other subheading outside that group.
8470.10-8471.50..................................... A change to subheading 8470.10 through 8471.50 from any
other subheading outside that group, except from heading
8473; or
A change to subheading 8470.10 through 8471.50 from any
other subheading within that group or from heading 8473,
provided that the change is not the result of a simple
assembly.
8471.60-8472.90..................................... A change to subheading 8471.60 through 8472.90 from any
other subheading outside that group, except from
subheading 8504.40 or heading 8473; or
A change to subheading 8471.60 through 8472.90 from any
other subheading within that group or from subheading
8504.40 or from heading 8473, provided that the change is
not the result of a simple assembly.
8473................................................ A change to heading 8473 from any other heading, except
from heading 8414, 8501, 8504, 8534, 8541, or 8542 when
resulting from a simple assembly.
8474.10-8474.80..................................... A change to subheading 8474.10 through 8474.80 from any
other subheading outside that group, except from heading
8501; or
A change to subheading 8474.10 through 8474.80 from any
other subheading within that group or from heading 8501,
provided that the change is not the result of a simple
assembly.
8474.90............................................. A change to subheading 8474.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8475.10............................................. A change to subheading 8475.10 from any other subheading.
8475.21-8475.29..................................... A change to subheading 8475.21 through 8475.29 from any
other subheading outside that group.
8475.90............................................. A change to subheading 8475.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8476.21-8476.89..................................... A change to subheading 8476.21 through 8476.89 from any
other subheading outside that group.
8476.90............................................. A change to subheading 8476.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8477.10-8477.80..................................... A change to subheading 8477.10 through 8477.80 from any
other subheading, including another subheading within
that group.
8477.90............................................. A change to subheading 8477.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8478.10............................................. A change to subheading 8478.10 from any other subheading.
[[Page 28974]]
8478.90............................................. A change to subheading 8478.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8479.10-8479.89..................................... A change to subheading 8479.10 through 8479.89 from any
other subheading, including another subheading within
that group.
8479.90............................................. A change to subheading 8479.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8480................................................ A change to heading 8480 from any other heading.
8481.10-8481.80..................................... A change to subheading 8481.10 through 8481.80 from any
other heading, or from subheading 8481.90 except when
resulting from a simple assembly.
8481.90............................................. A change to subheading 8481.90 from any other heading.
8482.10-8482.80..................................... A change to subheading 8482.10 through 8482.80 from any
other heading; or
A change to subheading 8482.10 through 8482.80 from any
other subheading, including another subheading within
that group, except from inner or outer races or rings
classified in subheading 8482.99.05, 8482.99.15, or
8482.99.25.
8482.91-8482.99..................................... A change to subheading 8482.91 through 8482.99 from any
other heading.
8483.10............................................. A change to subheading 8483.10 from any other subheading.
8483.20............................................. A change to subheading 8483.20 from any other subheading,
except from subheading 8482.10 through 8482.80.
8483.30-8483.60..................................... A change to subheading 8483.30 through 8483.60 from any
other subheading, including another subheading within
that group.
8483.90............................................. A change to subheading 8483.90 from any other heading.
8484.10-8484.90..................................... A change to subheading 8484.10 through 8484.90 from any
other subheading, including another subheading within
that group.
8485................................................ A change to subheading 8485 from any other heading.
8501................................................ A change to heading 8501 from any other heading.
8502................................................ A change to heading 8502 from any other heading.
8503................................................ A change to heading 8503 from any other heading.
8504.10-8504.50..................................... A change to subheading 8504.10 through 8504.50 from any
other subheading outside that group.
8504.90............................................. A change to subheading 8504.90 from any other heading.
8505.11-8505.30..................................... A change to subheading 8505.11 through 8505.30 from any
other subheading, including another subheading within
that group.
8505.90............................................. A change to subheading 8505.90 from any other heading.
8506.10............................................. A change to subheading 8506.10 from any other subheading;
or
A change to a primary cell or battery of maganese dioxide
of an external volume not exceeding 300 cm3 of subheading
8506.10 from any other good of subheading 8506.10; or
A change to a primary cell or battery of maganese dioxide
of an external volume exceeding 300 cm3 of subheading
8506.10 from any other good of subheading 8506.10.
8506.30............................................. A change to subheading 8506.30 from any other subheading;
or
A change to a primary cell or battery of mercuric oxide of
an external volume not exceeding 300 cm3 of subheading
8506.30 from any other good of subheading 8506.30; or
A change to a primary cell or battery of mercuric oxide of
an external volume exceeding 300 cm3 of subheading
8506.30 from any other good of subheading 8506.30.
8506.40............................................. A change to subheading 8506.40 from any other subheading;
or
A change to a primary cell or battery of silver oxide of
an external volume not exceeding 300 cm3 of subheading
8506.40 from any other good of subheading 8506.40; or
A change to a primary cell or battery of silver oxide of
an external volume exceeding 300 cm3 of subheading
8506.40 from any other good of subheading 8506.40.
8506.50-8506.80..................................... A change to subheading 8506.50 through 8506.80 from any
other subheading outside that group; or
A change to a primary cell or battery of an external
volume not exceeding 300 cm3 of subheading 8506.50
through 8506.80 from any other good of subheading 8506.50
through 8506.80; or
A change to a primary cell or battery of an external
volume exceeding 300 cm3 of subheading 8506.50 through
8506.80 from any other good of subheading 8506.50 through
8506.80.
8506.90............................................. A change to subheading 8506.90 from any other heading.
8507.10-8507.80..................................... A change to subheading 8507.10 through 8507.80 from any
other subheading, including another subheading within
that group.
8507.90............................................. A change to subheading 8507.90 from any other heading.
8508.10-8508.80..................................... A change to subheading 8508.10 through 8508.80 from any
other subheading, including another subheading within
that group.
8508.90............................................. A change to subheading 8508.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8509.10-8509.80..................................... A change to subheading 8509.10 through 8509.80 from any
other subheading, including another subheading within
that group.
8509.90............................................. A change to subheading 8509.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8510.10-8510.30..................................... A change to subheading 8510.10 through 8510.30 from any
other subheading, including another subheading within
that group.
8510.90............................................. A change to subheading 8510.90 from any other heading,
except from heading 8501 when resulting from a simple
assembly.
8511.10-8511.80..................................... A change to subheading 8511.10 through 8511.80 from any
other subheading, including another subheading within
that group.
8511.90............................................. A change to subheading 8511.90 from any other heading.
8512.10-8512.30..................................... A change to subheading 8512.10 through 8512.30 from any
other subheading outside that group.
8512.40............................................. A change to subheading 8512.40 from any other subheading,
except from subheading 8512.90 or heading 8501 when
resulting from a simple assembly.
8512.90............................................. A change to subheading 8512.90 from any other heading.
[[Page 28975]]
8513.10............................................. A change to subheading 8513.10 from any other subheading.
8513.90............................................. A change to subheading 8513.90 from any other heading.
8514.10-8514.40..................................... A change to subheading 8514.10 through 8514.40 from any
other subheading, including another subheading within
that group.
8514.90............................................. A change to subheading 8514.90 from any other heading.
8515.11-8515.80..................................... A change to subheading 8515.11 through 8515.80 from any
other subheading outside that group.
8515.90............................................. A change to subheading 8515.90 from any other heading.
8516.10-8516.79..................................... A change to subheading 8516.10 through 8516.79 from any
other subheading, including another subheading within
that group.
8516.80............................................. A change to subheading 8516.80 from any other heading.
8516.90............................................. A change to subheading 8516.90 from any other heading.
8517.11-8517.80..................................... A change to subheading 8517.11 through 8517.80 from any
other subheading outside that group, except from
subheading 8517.90; or
A change to subheading 8517.11 through 8517.80 from
subheading 8517.90, provided that the change is not the
result of a simple assembly.
8517.90............................................. A change to subheading 8517.90 from any other heading.
8518.10-8518.50..................................... A change to subheading 8518.10 through 8518.50 from any
other heading.
8518.90............................................. A change to subheading 8518.90 from any other heading.
8519.10-8519.40..................................... A change to subheading 8519.10 through 8519.40 from any
other subheading, including another subheading within
that group.
8519.92-8519.93..................................... A change to subheading 8519.92 through 8519.93 from any
other subheading outside that group.
8519.99............................................. A change to subheading 8519.99 from any other subheading.
8520.10-8520.20..................................... A change to subheading 8520.10 through 8520.20 from any
other subheading, including another subheading within
that group.
8520.32-8520.33..................................... A change to subheading 8520.32 through 8520.33 from any
other subheading outside that group.
8520.39-8520.90..................................... A change to subheading 8520.39 through 8520.90 from any
other subheading, including another subheading within
that group.
8521.10-8521.90..................................... A change to subheading 8521.10 through 8521.90 from any
other subheading, including another subheading within
that group.
8522................................................ A change to heading 8522 from any other heading.
8523................................................ A change to heading 8523 from any other heading.
8524................................................ A change to heading 8524 from any other heading.
8525.10-8525.20..................................... A change to subheading 8525.10 through 8525.20 from any
other subheading outside that group.
8525.30-8525.40..................................... A change to subheading 8525.30 through 8525.40 from any
other subheading, including another subheading within
that group, except a change to video camera recorders of
subheading 8525.40 from television cameras of subheading
8525.30.
8526.10-8526.92..................................... A change to subheading 8526.10 through 8526.92 from any
other subheading, including another subheading within
that group.
8527.12-8527.13..................................... A change to subheading 8527.12 through 8527.13 from any
other subheading outside that group.
8527.19-8527.90..................................... A change to subheading 8527.19 through 8527.90 from any
other subheading, including another subheading within
that group.
8528.12-8528.30..................................... A change to subheading 8528.12 through 8528.30 from any
other subheading, including another subheading within
that group, except from subheading 8540.11 through
8540.12.
8529................................................ A change to heading 8529 from any other heading.
8530.10-8530.80..................................... A change to subheading 8530.10 through 8530.80 from any
other subheading, including another subheading within
that group.
8530.90............................................. A change to subheading 8530.90 from any other heading.
8531.10-8531.80..................................... A change to subheading 8531.10 through 8531.80 from any
other subheading, including another subheading within
that group, except from subheading 8531.90 when resulting
from a simple assembly.
8531.90............................................. A change to subheading 8531.90 from any other heading.
8532.10-8532.30..................................... A change to subheading 8532.10 through 8532.30 from any
other subheading, including another subheading within
that group.
8532.90............................................. A change to subheading 8532.90 from any other heading.
8533.10-8533.40..................................... A change to subheading 8533.10 through 8533.40 from any
other subheading, including another subheading within
that group.
8533.90............................................. A change to subheading 8533.90 from any other heading.
8534................................................ A change to heading 8534 from any other heading.
8535.10-8535.90..................................... A change to subheading 8535.10 through 8535.90 from any
other subheading, including another subheading within
that group.
8536.10-8536.90..................................... A change to subheading 8536.10 through 8536.90 from any
other subheading, including another subheading within
that group.
8537................................................ A change to heading 8537 from any other heading.
8538................................................ A change to heading 8538 from any other heading.
8539.10-8539.31..................................... A change to subheading 8539.10 through 8539.31 from any
other subheading, including another subheading within
that group.
8539.32-8539.39..................................... A change to subheading 8539.32 through 8539.39 from any
other subheading outside that group.
8539.41-8539.49..................................... A change to subheading 8539.41 through 8539.49 from any
other subheading outside that group.
8539.90............................................. A change to subheading 8539.90 from any other heading.
8540.11-8540.20..................................... A change to subheading 8540.11 through 8540.20 from any
other subheading, including another subheading within
that group.
8540.40-8540.60..................................... A change to subheading 8540.40 through 8540.60 from any
other subheading outside that group.
8540.71-8540.99..................................... A change to subheading 8540.71 through 8540.99 from any
other subheading, including another subheading within
that group.
[[Page 28976]]
8540.91-8540.99..................................... A change to subheading 8540.91 through 8540.99 from any
other subheading, including another subheading within
that group, except when resulting from a simple assembly.
8541-8542........................................... A change to heading 8541 through 8542 from any other
subheading, including another subheading within that
group; or
A change to a mounted chip, die or wafer classified in
heading 8541 or 8542 from an unmounted chip, die or wafer
classified in heading 8541 or 8542; or
A change to a programmed ``read only memory'' (ROM) chip
from an unprogrammed ``programmable read only memory''
(PROM) chip.
8543.11-8543.19..................................... A change to subheading 8543.11 through 8543.19 from any
other subheading outside that group.
8543.20-8543.30..................................... A change to subheading 8543.20 through 8543.30 from any
other subheading, including another subheading within
that group.
8543.40-8543.89..................................... A change to subheading 8543.40 through 8543.89 from any
other subheading outside that group.
8543.90............................................. A change to subheading 8543.90 from any other heading.
8544.11-8544.70..................................... A change to subheading 8544.11 through 8544.70 from any
other subheading, including another subheading within
that group, except when resulting from a simple assembly.
8545.11-8547.90..................................... A change to subheading 8545.11 through 8547.90 from any
other subheading, including another subheading within
that group.
8548................................................ A change to heading 8548 from any other heading.
----------------------------------------------------------------------------------------------------------------
(p) Section XVII: Chapters 86 through 89
----------------------------------------------------------------------------------------------------------------
8601................................................ A change to heading 8601 from any other heading.
8602................................................ A change to heading 8602 from any other heading.
8603-8606........................................... A change to heading 8603 through 8606 from any other
heading, including another heading within that group,
except from heading 8607 when that change is pursuant to
General Rule of Interpretation 2(a).
8607.11............................................. A change to subheading 8607.11 from any other subheading,
except from subheading 8607.12, and except from
subheading 8607.19 when that change is pursuant to
General Rule of Interpretation 2(a).
8607.12............................................. A change to subheading 8607.12 from any other subheading,
except from subheading 8607.11, and except from
subheading 8607.19 when that change is pursuant to
General Rule of Interpretation 2(a).
8607.19............................................. A change to subheading 8607.19 from any other subheading.
8607.21-8607.99..................................... A change to subheading 8607.21 through 8607.99 from any
other heading, except to mounted brake linings and pads
of subheading 8607.21 through 8607.99 from subheading
6813.10.
8608................................................ A change to heading 8608 from any other heading.
8609................................................ A change to heading 8609 from any other heading, except
from heading 7309 through 7311.
8701-8705........................................... A change to heading 8701 through 8705 from any other
heading, including another heading within that group,
except from heading 8706.
8706................................................ A change to heading 8706 from any other heading.
8707................................................ A change to heading 8707 from any other heading, except
from subheading 8708.29 when that change is pursuant to
General Rule of Interpretation 2(a).
Note: Any change to heading 8708 from subheading 8709.90, 8716.90, 8431.20, or 8431.49 shall not be considered
to satisfy a required change in tariff classification.
8708.10............................................. A change to subheading 8708.10 from any other subheading.
8708.29............................................. A change to subheading 8708.29 from any other subheading.
8708.31............................................. A change to subheading 8708.31 from any other heading,
except to mounted brake linings and pads of subheading
8708.31 from subheading 6813.10.
8708.39............................................. A change to subheading 8708.39 from any other heading.
8708.40............................................. A change to subheading 8708.40 from any other subheading,
except from subheading 8708.99 when that change is
pursuant to General Rule of Interpretation 2(a).
8708.50............................................. A change to subheading 8708.50 from any other subheading,
except from subheading 8708.99 when that change is
pursuant to General Rule of Interpretation 2(a).
8708.60............................................. A change to subheading 8708.60 from any other subheading.
8708.70............................................. A change to subheading 8708.70 from any other subheading.
8708.80............................................. A change to subheading 8708.80 from any other subheading,
except from subheading 8708.99 when that change is
pursuant to General Rule of Interpretation 2(a).
8708.91............................................. A change to subheading 8708.91 from any other subheading,
except from subheading 8708.99 when that change is
pursuant to General Rule of Interpretation 2(a).
8708.92............................................. A change to subheading 8708.92 from any other subheading.
8708.93............................................. A change to subheading 8708.93 from any other subheading.
8708.94............................................. A change to subheading 8708.94 from any other subheading,
except from subheading 8708.99 when that change is
pursuant to General Rule of Interpretation 2(a).
8708.99............................................. A change to subheading 8708.99 from any other subheading.
8709.11-8709.19..................................... A change to subheading 8709.11 through 8709.19 from any
other subheading outside that group, except from
subheading 8709.90 when that change is pursuant to
General Rule of Interpretation 2(a).
8709.90............................................. A change to subheading 8709.90 from any other heading,
except from subheading 8431.20 or heading 8708.
8710................................................ A change to heading 8710 from any other heading.
8711-8713........................................... A change to heading 8711 through 8713 from any other
heading, including another heading within that group,
except from heading 8714 when that change is pursuant to
General Rule of Interpretation 2(a).
8714................................................ A change to heading 8714 from any other heading, except
from subheading 6813.10 to mounted brake linings or pads
classified in heading 8714.
8715................................................ A change to heading 8715 from any other heading.
8716.10-8716.80..................................... A change to subheading 8716.10 through 8716.80 from any
other heading, except from subheading 8716.90 when that
change is pursuant to General Rule of Interpretation
2(a).
8716.90............................................. A change to subheading 8716.90 from any other heading,
except from subheading 8709.90 or 8431.49.
[[Page 28977]]
8801-8802........................................... A change to heading 8801 through 8802 from any other
heading outside that group, except from heading 8803 when
that change is pursuant to General Rule of Interpretation
2(a).
8803.10-8803.90..................................... A change to subheading 8803.10 through 8803.90 from any
other subheading, including another subheading within
that group.
8805................................................ A change to heading 8805 from any other heading.
8901-8903........................................... A change to heading 8901 through 8903 from any other
heading outside that group.
8904................................................ A change to heading 8904 from any other heading.
8905................................................ A change to heading 8905 from any other chapter.
8906-8907........................................... A change to heading 8906 through 8907 from any other
heading, including another heading within that group,
except from heading 8903 or 8905.
8908................................................ A change to heading 8908 from any other chapter.
----------------------------------------------------------------------------------------------------------------
(q) Section XVIII: Chapters 90 through 92
----------------------------------------------------------------------------------------------------------------
9001.10............................................. A change to subheading 9001.10 from any other subheading,
except from subheading 8544.70.
9001.20-9001.30..................................... A change to subheading 9001.20 through 9001.30 from any
other subheading, including another subheading within
that group.
9001.40-9001.90..................................... A change to subheading 9001.40 through 9001.90 from any
other subheading, including another subheading within
that group, except from lens blanks of heading 7014 or
subheading 7015.10.
9002.11-9002.90..................................... A change to subheading 9002.11 through 9002.90 from any
other subheading, including another subheading within
that group, except from subheading 9001.90 or from lens
blanks of heading 7014.
9003.11-9003.19..................................... A change to subheading 9003.11 through 9003.19 from any
other heading; or
A change to subheading 9003.11 through 9003.19 from any
other subheading, including another subheading within
that group, except from subheading 9003.90 if the temples
or fronts are not domestic materials.
9003.90............................................. A change to subheading 9003.90 from any other heading.
9004................................................ A change to heading 9004 from any other heading, except
from subheading 9001.40 or 9001.50.
9005.10-9005.80..................................... A change to subheading 9005.10 through 9005.80 from any
other subheading, including another subheading within
that group.
9005.90............................................. A change to subheading 9005.90 from any other heading,
except from heading 9001 or 9002.
9006.10-9006.69..................................... A change to subheading 9006.10 through 9006.69 from any
other subheading, including another subheading within
that group.
9006.91-9006.99..................................... A change to subheading 9006.91 through 9006.99 from any
other heading.
9007.11-9007.19..................................... A change to subheading 9007.11 through 9007.19 from any
other subheading, including another subheading within
that group.
9007.20............................................. A change to subheading 9007.20 from any other subheading;
or
A change to a projector for film of less than 16mm width
of subheading 9007.20 from any other projector of
subheading 9007.20; or
A change from a projector for film of less than 16mm width
of subheading 9007.20 to any other projector of
subheading 9007.20.
9007.91-9007.92..................................... A change to subheading 9007.91 through 9007.92 from any
other heading, except from lenses of heading 9002 when
resulting from a simple assembly.
9008.10-9008.40..................................... A change to subheading 9008.10 through 9008.40 from any
other subheading, including another subheading within
that group.
9008.90............................................. A change to subheading 9008.90 from any other heading,
except from lenses of heading 9002 when resulting from a
simple assembly.
9009.11-9009.30..................................... A change to subheading 9009.11 through 9009.30 from any
other subheading, including another subheading within
that group.
9009.90............................................. A change to subheading 9009.90 from any other heading.
9010.10............................................. A change to subheading 9010.10 from any other subheading.
9010.41-9010.50..................................... A change to subheading 9010.41 through 9010.50 from any
other subheading outside that group.
9010.60............................................. A change to subheading 9010.60 from any other subheading.
9010.90............................................. A change to subheading 9010.90 from any other heading.
9011.10-9011.80..................................... A change to subheading 9011.10 through 9011.80 from any
other subheading, including another subheading within
that group.
9011.90............................................. A change to subheading 9011.90 from any other heading.
9012.10............................................. A change to subheading 9012.10 from any other subheading,
including another subheading within that group.
9012.90............................................. A change to subheading 9012.90 from any other heading.
9013.10............................................. A change to subheading 9013.10 from any other subheading,
except from optical telescopes of subheading 9005.80.
9013.20-9013.80..................................... A change to subheading 9013.20 through 9013.80 from any
other subheading, including another subheading within
that group.
9013.90............................................. A change to subheading 9013.90 from any other subheading,
except from subheading 9002.19 when resulting from a
simple assembly.
9014.10-9014.80..................................... A change to subheading 9014.10 through 9014.80 from any
other subheading, including another subheading within
that group.
9014.90............................................. A change to subheading 9014.90 from any other heading.
9015.10-9015.80..................................... A change to subheading 9015.10 through 9015.80 from any
other subheading, including another subheading within
that group.
9015.90............................................. A change to subheading 9015.90 from any other heading.
9016................................................ A change to heading 9016 from any other heading.
9017.10-9017.80..................................... A change to subheading 9017.10 through 9017.80 from any
other subheading, including another subheading within
that group.
[[Page 28978]]
9017.90............................................. A change to subheading 9017.90 from any other heading.
9018.11............................................. A change to subheading 9018.11 from any other subheading,
except to electro-cardiographs from printed circuit
assemblies when resulting from a simple assembly.
9018.12-9018.14..................................... A change to subheading 9018.12 through 9018.14 from any
other subheading outside that group, except from
subheading 9018.19.
9018.19............................................. A change to subheading 9018.19 from any other subheading,
except to patient monitoring systems from printed circuit
assemblies when resulting from a simple assembly.
9018.20-9018.32..................................... A change to subheading 9018.20 through 9018.32 from any
other subheading, including another subheading within
that group.
9018.39............................................. A change to subheading 9018.39 from any other subheading,
except from surgical tubing of subheading 4009.10 when
resulting from a simple assembly.
9018.41-9018.50..................................... A change to subheading 9018.41 through 9018.50 from any
other subheading, including another subheading within
that group.
9018.90............................................. A change to subheading 9018.90 from any other subheading,
except from subheading 9001.90 or synthetic rubber
classified in heading 4002 when resulting from a simple
assembly; or
A change to defibrillators from printed circuit
assemblies, except when resulting from a simple assembly.
9019.10-9019.20..................................... A change to subheading 9019.10 through 9019.20 from any
other subheading, including another subheading within
that group.
9020................................................ A change to heading 9020 from any other heading.
9021.11............................................. A change to subheading 9021.11 from any other subheading,
including another subheading within that group.
9021.19............................................. A change to subheading 9021.19 from any other subheading,
except from nails classified in heading 7317 or screws
classified in heading 7318 when resulting from a simple
assembly.
9021.21-9021.90..................................... A change to subheading 9021.21 through 9021.90 from any
other subheading, including another subheading within
that group.
9022.12-9022.14..................................... A change to subheading 9022.12 through 9022.14 from any
other subheading outside that group.
9022.19-9022.90..................................... A change to subheading 9022.19 through 9022.90 from any
other subheading, including another subheading within
that group.
9023................................................ A change to heading 9023 from any other heading.
9024.10-9024.80..................................... A change to subheading 9024.10 through 9024.80 from any
other subheading, including another subheading within
that group.
9024.90............................................. A change to subheading 9024.90 from any other heading.
9025.11-9025.80..................................... A change to subheading 9025.11 through 9025.80 from any
other subheading, including another subheading within
that group.
9025.90............................................. A change to subheading 9025.90 from any other heading.
9026.10-9026.80..................................... A change to subheading 9026.10 through 9026.80 from any
other subheading, including another subheading within
that group.
9026.90............................................. A change to subheading 9026.90 from any other heading.
9027.10-9027.90..................................... A change to subheading 9027.10 through 9027.90 from any
other subheading, including another subheading within
that group.
9028.10-9028.30..................................... A change to subheading 9028.10 through 9028.30 from any
other subheading, including another subheading within
that group.
9028.90............................................. A change to subheading 9028.90 from any other heading.
9029.10-9029.20..................................... A change to subheading 9029.10 through 9029.20 from any
other subheading, including another subheading within
that group.
9029.90............................................. A change to subheading 9029.90 from any other heading.
9030.10-9030.40..................................... A change to subheading 9030.10 through 9030.40 from any
other subheading, including another subheading within
that group.
9030.82-9030.83..................................... A change to subheading 9030.82 through 9030.83 from any
other subheading outside that group.
9030.89-9030.90..................................... A change to subheading 9030.89 through 9030.90 from any
other subheading outside that group.
9031.10-9031.30..................................... A change to subheading 9031.10 through 9031.30 from any
other subheading, including another subheading within
that group.
9031.41-9031.49..................................... A change to subheading 9031.41 through 9031.49 from any
other subheading outside that group.
9031.80............................................. A change to subheading 9031.80 from any other subheading.
9031.90............................................. A change to subheading 9031.90 from any other heading.
9032.10-9032.89..................................... A change to subheading 9032.10 through 9032.89 from any
other subheading, including another subheading within
that group.
9032.90............................................. A change to subheading 9032.90 from any other subheading,
except from heading 8537 when resulting from a simple
assembly.
9033................................................ A change to heading 9033 from any other heading.
Chapter 91 Note: The country of origin of goods classified in subheading 9113.90.40 shall be determined under
the provisions of Sec. 102.21.
9101-9107........................................... A change to heading 9101 through 9107 from any other
heading outside that group, except from heading 9108
through 9110; or
A change to heading 9101 through 9107 from complete
movements, unassembled, classified in subheading 9110.11
or 9110.90, or from rough movements classified in
subheading 9110.19 or 9110.90.
9108-9109........................................... A change to heading 9108 through 9109 from any other
heading outside that group, except from heading 9110; or
A change to heading 9108 through 9109 from complete
movements, unassembled, classified in subheading 9110.11
or 9110.90, or from rough movements classified in
subheading 9110.19 or 9110.90.
9110................................................ A change to heading 9110 from any other heading, except
from subheading 9114.90.
9111.10-9111.80..................................... A change to subheading 9111.10 through 9111.80 from any
other subheading outside that group, except from
subheading 9111.90 when that change is pursuant to
General Rule of Interpretation 2(a).
9111.90............................................. A change to subheading 9111.90 from any other heading.
9112.10-9112.80..................................... A change to subheading 9112.10 through 9112.80 from any
other subheading outside that group, except from
subheading 9112.90 when that change is pursuant to
General Rule of Interpretation 2(a).
9112.90............................................. A change to subheading 9112.90 from any other heading.
[[Page 28979]]
9113................................................ A change to heading 9113 from any other heading.
9114................................................ A change to heading 9114 from any other heading.
9201-9208........................................... A change to heading 9201 through 9208 from any other
heading, including another heading within that group,
except from heading 9209 when that change is pursuant to
General Rule of Interpretation 2(a).
9209................................................ A change to heading 9209 from any other heading.
----------------------------------------------------------------------------------------------------------------
(r) Section XIX: Chapter 93
----------------------------------------------------------------------------------------------------------------
9301-9304........................................... A change to heading 9301 through 9304 from any other
heading, including another heading within that group,
except from heading 9305 when that change is pursuant to
General Rule of Interpretation 2(a).
9305................................................ A change to heading 9305 from any other heading.
9306................................................ A change to heading 9306 from any other heading.
9307................................................ A change to heading 9307 from any other heading.
----------------------------------------------------------------------------------------------------------------
(s) Section XX: Chapters 94 through 96
----------------------------------------------------------------------------------------------------------------
Chapter 94 Note: For a good classifiable in subheadings 9404.30 through 9404.90 which does not meet the
appropriate tariff shift rule specified for those subheadings, the country of origin is the country where all
cutting and sewing operations required to form the outer shell were performed. If all cutting and sewing
operations required to form the outer shell were not performed in a single country, the country of origin will
be the single country where the component of the outer shell which determines the classification of that good
was produced. If a single country did not produce a component of the outer shell which determines the
classification of that good, then the country of origin will be the country in which the good last underwent a
substantial assembly process. Notwithstanding the foregoing provisions of this Note, the country of origin of
goods classified in subheadings 9404.90.10 and 9404.90.80 through 9404.90.95 shall be determined under the
provisions of Sec. 102.21.
9401.10-9401.80..................................... A change to subheading 9401.10 through 9401.80 from any
other subheading outside that group, except from
subheading 9403.10 through 9403.80, and except from
subheading 9401.90 or 9403.90 when that change is
pursuant to General Rule of Interpretation 2(a).
9401.90............................................. A change to subheading 9401.90 from any other heading,
except from subheading 9403.90.
9402................................................ A change to heading 9402 from any other heading, except
from subheading 9401.10 through 9401.80 or subheading
9403.10 through 9403.80, and except from subheading
9401.90 or 9403.90 when that change is pursuant to
General Rule of Interpretation 2(a).
9403.10-9403.80..................................... A change to subheading 9403.10 through 9403.80 from any
other subheading outside that group, except from
subheading 9401.10 through 9401.80, and except from
subheading 9401.90 or 9403.90 when that change is
pursuant to General Rule of Interpretation 2(a).
9403.90............................................. A change to subheading 9403.90 from any other heading,
except from subheading 9401.90.
9404.10-9404.29..................................... A change to subheading 9404.10 through 9404.29 from any
other heading.
9404.30-9404.90..................................... A change to down- and/or feather-filled goods classified
in subheading 9404.30 through 9404.90 from any other
heading; or
For all other goods classified in subheading 9404.30
through 9404.90, a change from any other heading, except
from heading 5007, 5111 through 5113, 5208 through 5212,
5309 through 5311, 5407 through 5408, 5512 through 5516,
5602 through 5603, 5801 through 5804, 5806, 5809 through
5810, 5901, 5903 through 5904, 5906 through 5907, or 6001
through 6002, or subheading 6307.90.
9405.10-9405.60..................................... A change to subheading 9405.10 through 9405.60 from any
other subheading outside that group, except from
subheading 9405.91 through 9405.99 when that change is
pursuant to General Rule of Interpretation 2(a).
9405.91-9405.99..................................... A change to subheading 9405.91 through 9405.99 from any
other heading.
9406................................................ A change to heading 9406 from any other heading.
9501................................................ A change to heading 9501 from any other chapter, except
from heading 8714 when that change is pursuant to General
Rule of Interpretation 2(a).
9502.10............................................. A change to subheading 9502.10 from any other subheading,
except from skins for stuffed dolls classified in
subheading 9502.99.
9502.99............................................. A change to subheading 9502.99 from any other heading,
except from subheading 9503.41 through 9503.49.
9503.10-9503.30..................................... A change to subheading 9503.10 through 9503.30 from any
other subheading, including another subheading within
that group.
9503.41-9503.49..................................... A change to toys classified in subheading 9503.41 through
9503.49 from any other heading; or
A change to toys classified in subheading 9503.41 through
9503.49 from parts and accessories classified in
subheading 9503.41 through 9503.49; or
A change to parts and accessories classified in subheading
9503.41 through 9503.49 from any other heading, except
from heading 9502, 6111, or 6209.
9503.50-9503.60..................................... A change to subheading 9503.50 through 9503.60 from any
other subheading, including another subheading within
that group.
9503.70-9503.90..................................... A change to subheading 9503.70 through 9503.90 from any
other chapter.
9504.10-9506.29..................................... A change to subheading 9504.10 through 9506.29 from any
other subheading, including another subheading within
that group.
9506.31............................................. A change to subheading 9506.31 from any other subheading,
except from subheading 9506.39.
9506.32-9506.99..................................... A change to subheading 9506.32 through 9506.99 from any
other subheading, including another subheading within
that group.
9507.10-9507.30..................................... A change to subheading 9507.10 through 9507.30 from any
other chapter.
9507.90............................................. A change to subheading 9507.90 from any other subheading,
except from heading 5004 through 5006, subheading 5402.10
through 5402.49, subheading 5406.10 through 5406.20, or
heading 5603 or 5404.
9508................................................ A change to heading 9508 from any other heading.
Chapter 96 Note: The country of origin of goods classified in subheading 9612.10.9010 shall be determined
under the provisions of Sec. 102.21.
9601................................................ A change to heading 9601 from any other heading.
9602................................................ A change to heading 9602 from any other heading.
[[Page 28980]]
9603................................................ A change to heading 9603 from any other heading.
9604-9605........................................... A change to heading 9604 through 9605 from any other
heading, including another heading within that group.
9606.10............................................. A change to subheading 9606.10 from any other heading.
9606.21-9606.29..................................... A change to subheading 9606.21 through 9606.29 from any
other heading.
9606.30............................................. A change to subheading 9606.30 from any other heading.
9607.11-9607.19..................................... A change to subheading 9607.11 through 9607.19 from any
other subheading, except from subheading 9607.20 when
that change is pursuant to General Rule of Interpretation
2(a).
9607.20............................................. A change to subheading 9607.20 from any other subheading.
9608.10-9608.40..................................... A change to subheading 9608.10 through 9608.40 from any
other subheading, including another subheading within
that group, except from subheading 9608.60.
9608.50............................................. A change to subheading 9608.50 from any other heading.
9608.60-9608.99..................................... A change to subheading 9608.60 through 9608.99 from any
other subheading, including another subheading within
that group.
9609.10............................................. A change to subheading 9609.10 from any other subheading.
9609.20............................................. A change to subheading 9609.20 from any other chapter.
9609.90............................................. A change to subheading 9609.90 from any other chapter.
9610-9612........................................... A change to heading 9610 through 9612 from any other
heading, including another heading within that group.
9613.10-9613.20..................................... A change to subheading 9613.10 through 9613.20 from any
other subheading outside that group.
9613.30-9613.80..................................... A change to subheading 9613.30 through 9613.80 from any
other subheading, including another subheading within
that group.
9613.90............................................. A change to subheading 9613.90 from any other heading.
9614.20............................................. A change to subheading 9614.20 from any other subheading,
except to roughly shaped blocks of wood or root of
subheading 9614.20 from heading 4407.
9614.90............................................. A change to subheading 9614.90 from any other heading.
9615.11-9615.90..................................... A change to subheading 9615.11 through 9615.90 from any
other subheading, including another subheading within
that group.
9616-9618........................................... A change to heading 9616 through 9618 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
(t) Section XXI: Chapter 97
----------------------------------------------------------------------------------------------------------------
9701.10-9701.90..................................... A change to subheading 9701.10 through 9701.90 from any
other subheading, including another subheading within
that group.
9702-9706........................................... A change to heading 9702 through 9706 from any other
heading, including another heading within that group.
----------------------------------------------------------------------------------------------------------------
PART 134--COUNTRY OF ORIGIN MARKING
1. The authority citation for part 134 continues to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20,
Harmonized Tariff Schedule of the United States), 1304, 1624.
Sec. 134.32 [Amended]
2. In Sec. 134.32, paragraph (r) is removed.
3. In Sec. 134.43, paragraph (e) is revised to read as follows:
Sec. 134.43 Methods of marking specific articles.
* * * * *
(e) Assembled articles. Where an article is produced as a result of
an assembly operation and the country of origin of such article is
determined under this chapter to be the country in which the article
was finally assembled, such article may be marked, as appropriate, in a
manner such as the following:
(1) Assembled in (country of final assembly);
(2) Assembled in (country of final assembly) from components of
(name of country or countries of origin of all components); or
(3) Made in, or product of, (country of final assembly).
Michael H. Lane,
Acting Commissioner of Customs.
Approved: May 29, 1996.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 96-14027 Filed 6-5-96; 8:45 am]
BILLING CODE 4820-02-P
