Foreign Assembly of U.S. Components

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

What Every Member of the
Trade Community Should Know About:

Foreign Assembly of
U.S. Components

AN INFORMED COMPLIANCE PUBLICATION
APRIL 2006

Foreign Assembly of U.S. Components
April 2006

NOTICE:
This publication is intended to provide guidance and information to the trade
community. It reflects the position on or interpretation of the applicable laws or
regulations by U.S. Customs and Border Protection (“CBP”) as of the date of
publication, which is shown on the front cover. It does not in any way replace or
supersede those laws or regulations. Only the latest official version of the laws or
regulations is authoritative.

Publication History

Publication 536 was originally issued prior to 1985 as the “807 Guide”
Revised and retitled “Foreign Assembly of U.S. Components” April 1992
Revised: December 1996
Revised: June 2001
Revised: April 2006

PRINTING NOTE:

This publication was designed for electronic distribution via the CBP website
(http://www.cbp.gov) and is being distributed in a variety of formats. It was originally
set up in Microsoft Word97
®
. Pagination and margins in downloaded versions may
vary depending upon which word processor or printer you use. If you wish to
maintain the original settings, you may wish to download the .pdf version, which can
then be printed using the freely available Adobe Acrobat Reader
®
.

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PREFACE

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation
Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization or “Mod”
Act, became effective. These provisions amended many sections of the Tariff Act of 1930
and related laws.

Two new concepts that emerge from the Mod Act are “informed compliance” and “shared
responsibility,” which are premised on the idea that in order to maximize voluntary
compliance with the laws and regulations of U.S. Customs and Border Protection (“CBP”),
the trade community needs to be clearly and completely informed of its legal obligations.
Accordingly, the Mod Act imposes a greater obligation on CBP to provide the public with
improved information concerning the trade community's rights and responsibilities under
customs regulations and related laws. In addition, both the trade community and CBP share
responsibility for carrying out these requirements. For example, under Section 484 of the
Tariff Act, as amended (19 U.S.C. 1484), the importer of record is responsible for using
reasonable care to enter, classify and determine the value of imported merchandise and to
provide any other information necessary to enable CBP to assess duties properly, collect
accurate statistics, and determine whether other applicable legal requirements, if any, have
been met. CBP is then responsible for fixing the final classification and value of the
merchandise. The failure of an importer of record to exercise reasonable care could delay
release of the merchandise and, in some cases, could result in the imposition of penalties.

The Office of Regulations and Rulings has been given a major role in meeting the informed
compliance responsibilities of CBP. In order to provide information to the public, CBP has
issued a series of informed compliance publications and videos on new or revised
requirements, regulations or procedures, and a variety of classification and valuation issues.

The Commercial and Trade Facilitation Division of the Office of Regulations and Rulings has
prepared this publication on the Foreign Assembly of U.S. Components. We sincerely hope
that this material, together with seminars and increased access to administrative rulings of
CBP, will help the trade community to improve voluntary compliance with customs
regulations and laws and to understand the relevant administrative processes.

The material in this publication is provided for general information purposes only. As many
complicated factors can be involved in customs issues, an importer may wish to obtain an
advance or pre-importation ruling under CBP regulations (19 CFR Part 177) or to obtain
advice from an expert who specializes in customs matters, for example, a licensed customs
broker, attorney or consultant.

Comments and suggestions are welcomed and should be addressed to the Assistant
Commissioner at the Office of Regulations and Rulings, U.S. Customs and Border
Protection, 1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229.

Sandra L. Bell,
Acting Assistant Commissioner
Office of Regulations and Rulings

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TABLE OF CONTENTS

Introduction................................................................................................ 7
General 9802.00.80 Provisions ................................................................. 7
Applicability of Subheading 9802.00.80.............................................................8
"Fabricated" Components ...................................................................................... 8
Country of Origin Requirement for Fabricated Components.................................. 8
Excluded Components ........................................................................................... 9
Acceptable Assembly Operations........................................................................9
Operations "Incidental" to the Assembly Process................................................... 9
Operations "Not Incidental" to the Assembly Process .......................................... 10
Value of Fabricated Components.....................................................................10
Entry........................................................................................................................10
Sources of Information........................................................................................12
Updating Information...............................................................................12
Valuation.................................................................................................. 12

Material and Components........................................................................13
Foreign Plant Expenses ....................................................................................... 14
Assists .................................................................................................................. 14
Materials and Components................................................................................ 14
Tools, Dies, Molds and Similar Items ................................................................ 14
Engineering, Development, Artwork, Design Work, Plans, Sketches, etc. ........ 15
Country of Origin Marking...................................................................................15
Country of Origin Marking for Goods of a NAFTA Country................................... 15
Country of Origin of Textiles and Apparel Products .......................................15
Special Programs and Special Rules ...................................................... 16
AGOA and CBTPA ............................................................................................... 16
Mexico.................................................................................................................. 17

Obtaining Pre-Importation (Advance) Rulings...............................................18

Additional Information.........................................................................................18
The Internet.......................................................................................................... 18
Customs Regulations........................................................................................... 19

Customs Bulletin....................................................................................19
Importing into the United States.......................................................................... 19
Informed Compliance Publications...................................................................... 20
Value Publications............................................................................................... 20
"Your Comments are Important".......................................................................... 21

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Introduction

Subchapter II, Chapter 98 of the Harmonized Tariff Schedule of the United States
(“HTSUS”) contains several provisions which provide preferential tariff treatment for
qualifying articles which have been exported, advanced or improved abroad and
subsequently returned to the United States. This publication discusses the partial
duty exemption provided by subheading 9802.00.80, which is applicable to imported
articles which have been assembled abroad from fabricated components that are a
product of the United States.

This informed compliance publication is a revision of the CBP publication, “Foreign
Assembly of U.S. Components”, which was last revised in June 2001. Like its
predecessor, this publication is intended for use as a general guide only, and does
not supercede any CBP laws, regulations or rulings. Technical questions should be
addressed to the Commercial and Trade Facilitation Division of the Office of
Regulations and Rulings. The address for this office appears on the front page of
these materials.

General 9802.00.80 Provisions

All merchandise imported into the customs territory of the United States is subject to
duty on its full value unless specifically excepted. However, with the exception of
certain special programs described below for products assembled in sub-Saharan
Africa or in the Caribbean Basin which grant duty-free treatment when the special
terms are met, subheading 9802.00.80 provisions permit a reduction in duty (duty
allowance) for the value of components manufactured in the United States and
assembled abroad.
1
Therefore, an article entered under this tariff provision is
subject to duty upon the full value of the imported assembled article, less the cost or
value of U.S. components [Note: the cost or value factors which are necessary under
the provisions of subheading 9802.00.80 are discussed under the section addressing
Valuation.] As with other provisions of Chapter 98, subheading 9802.00.80 is
conditional in nature, and an importer must comply with the documentary
requirements of section 10.24, Customs Regulations (19 CFR 10.24), to receive the
benefit of this provision. Subheading 9802.00.80 involves a deduction from total
duties due, not a different rate of duty – the same basic tariff classification and rate
of duty applies whether or not an article is eligible for subheading 9802.00.80
treatment. Therefore, to establish the appropriate amount of the duty allowance,
complete and detailed data must be submitted regarding the imported article as well
as information sufficient to establish to CBP the value and origin of the U.S.-
manufactured components.

No single format for the submission of data is mandated; it may vary with the type of
merchandise, the type of assembly operation involved, and/or the accounting
procedure and capabilities of the importer. Importers may contact the port of entry to
consult with the CBP import specialist who is responsible for the classification and

1
There are special rules for certain textile and apparel articles assembled in certain sub-Saharan African or Caribbean Basin
countries and Mexico from fabrics wholly formed and cut in the United States. These are discussed below in the section
entitled Special Programs and Special Rules.

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appraisement of the merchandise in question to develop a format which is within the
practical capability of the importer and provides all the information required by CBP.

Failure to furnish the necessary data or failure to establish the origin of the U.S.-
manufactured components and the exact nature of the assembly operation may
result in an inability to obtain the permissible allowance under subheading
9802.00.80.

Applicability of Subheading 9802.00.80

Subheading 9802.00.80 provides a partial duty exemption for articles assembled
abroad in whole or in part of fabricated components, the product of the United
States, which:

(a) were exported in condition ready for assembly without further fabrication;
(b) have not lost their physical identity in such articles by change in form,
shape or otherwise; and
(c) have not been advanced in value or improved in condition abroad except
by being assembled and except by operations incidental to the assembly
process such as cleaning, lubrication, and painting.

All three requirements of subheading 9802.00.80 must be satisfied before a
fabricated component may receive a duty allowance.

“Fabricated” Components

Materials undefined in final dimension and shape, which are cut into specific shapes
or patterns abroad, are not considered fabricated components. For example,
materials such as lumber, leather, sheet metal and plastic sheeting which are
exported in basic shapes and forms and subsequently cut to a pattern to be
fabricated into components for assembly are not eligible for treatment as “fabricated”
components. Likewise, uncut textile fabric exported in bolts and cut to pattern (other
than length) does not qualify as a “fabricated” component. Articles identifiable in
their exported condition as components or parts of the article into which they will be
assembled, such as transistors, diodes, integrated circuits, machinery parts, or
precut parts of wearing apparel, are regarded as fabricated components. Other
illustrations of types of articles that constitute “fabricated” components can be found
at section 10.14, Customs Regulations (19 CFR 10.14).

Country of Origin Requirement for Fabricated Components

Only fabricated components that are the product of the United States may qualify for
the duty allowance. Foreign-made articles or materials imported into the United
States may qualify only where they subsequently undergo a process of manufacture
in the United States that results in a substantial transformation of the imported
product into a new and different product, with a new name, character and use which
is different from that possessed by the article or material before the manufacturing
process. The mere finishing or modification of a partially or nearly completed foreign
product will not result in a substantial transformation and such materials will retain

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their foreign origin. Therefore, articles previously imported and duty paid, which do
not undergo a substantial transformation in the United States before exportation for
assembly abroad, are fully dutiable upon return to the United States. The payment
of U.S. duty does not make foreign merchandise a product of the United States for
purposes of subheading 9802.00.80.

Once U.S.-fabricated components have been exported for assembly, there is no
restriction against using foreign-made components and materials during the
assembly process. However, upon return to the United States, only those U.S.
components which satisfy all the requirements of subheading 9802.00.80 will be
eligible for the duty allowance provided by this provision.

Excluded Components

Moreover, the duty allowance of 9802.00.80 is not applicable to any fabricated
component exported from the customs territory of the United States:

(a) From continuous customs custody with remission, abatement, or refund of
duty;
(b) With benefit of drawback;
(c) To comply with any law of the United States, or regulation of any Federal
agency requiring exportation; or
(d) After manufacture or production in the U.S. under subheading 9813.00.05,
HTSUS (i.e., articles admitted temporarily under bond for repair, alteration
or processing, including processes which result in articles manufactured or
produced in the United States).

Acceptable Assembly Operations

It is of paramount importance that assembly operations performed abroad that
involve U.S.-fabricated components do not exceed the strict criteria provided by
subheading 9802.00.80. If these criteria are exceeded, in that the U.S.-fabricated
components are subject to processes beyond what is considered to be acceptable
assembly operations (other than “operations incidental to the assembly process”
which are discussed below), the fabricated components will not be eligible to receive
preferential treatment under subheading 9802.00.80. Acceptable assembly
operations may consist of any method used to join or fit together solid components
(e.g., welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use
of fasteners). The mixing or combining of liquids, gases, chemicals, food
ingredients, and amorphous solids, either with each other or with solid components,
is not regarded as an assembly process. Other illustrations of acceptable operations
can be found at section 10.16(a), Customs Regulations (19 CFR 10.16(a)).

Operations “Incidental” to the Assembly Process

However, operations incidental to the foreign assembly process, whether performed
before, during, or after assembly, are allowed. Examples of such operations are
described at section 10.16(b), Customs Regulations (19 CFR 10.16(b)), and include:

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• cleaning
• the removal of rust, grease, paint or other preservative coating;
• the application of preservative paint or coating, including preservative metallic
coating, lubricants, or protective encapsulation;
• trimming, filing or the cutting off of small amounts of excess materials;
• adjusting the shape or form of a component to the extent required by the
assembly being performed abroad;
• separating by cutting of finished components;
• and the final calibration, testing, marking, sorting, pressing, and folding of
assembled articles.

Cutting materials into specific shapes and patterns abroad is NOT permissible;
however, the cutting to length of materials exported in a continuous length (i.e., bolts
of fabric, wire, thread, tape, foil, and similar products) is permissible as an operation
incidental to the assembly process, as is trimming.

Operations “Not Incidental” to the Assembly Process

While operations “incidental” to the assembly process are permissible under
subheading 9802.00.80, any significant process, operation or treatment whose
primary purpose is the fabrication, completion, physical improvement, or chemical
improvement of a U.S.-fabricated component will preclude the application of the duty
exemption provided by 9802.00.80. Examples of such operations are described at
section 10.16(c), Customs Regulations (19 CFR 10.16(c)), and include:

• the melting of exported ingots and pouring of the metal into molds to produce
cast metal parts;
• cutting garment parts according to pattern from exported material;
• painting primarily intended to enhance the appearance of an article or to
impart distinctive features or characteristics;
• the chemical treatment of components or assembled articles that imparts new
characteristics, such as showerproofing, permapressing, sanforizing, dyeing
or bleaching of textiles;
• machining, polishing, burnishing, peening, plating (other than plating
incidental to assembly), embossing, pressing, stamping, extruding, drawing,
annealing, tempering, case hardening, and
• any other operation, treatment or process which imparts significant new
characteristics or qualities to the article affected.

Value of Fabricated Components

As discussed further in the section on Valuation, it is necessary to calculate the full
value of the imported merchandise. The allowance for the U.S.-manufactured
components eligible for 9802.00.80 treatment will be predicated upon the cost or
value of each component, Free On Board (F.O.B.), the U.S. port of exportation. This
F.O.B. value should include the purchase price or, if not purchased, the cost to
acquire or manufacture the components and the costs of freight and insurance
incurred up to the time of the components’ arrival at the port of exportation.

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Entry

All merchandise arriving in the United States must be entered in accordance with the
U.S. customs laws and regulations. In this regard, the entry requirements for
merchandise entered under the provisions of subheading 9802.00.80 are generally
the same as those for all imported merchandise. The various types of entries and
the documents required for each type of entry are discussed in the informed
compliance publication entitled “What Every Member of the Trade Community
Should Know About: Entry.”

Section 481 of the Tariff Act of 1930, as amended (19 U.S.C. 1481), requires that
when making entry, an importer shall present to CBP a commercial invoice that
provides:

• a full description of the merchandise being imported (e.g., commercial name,
the grade or quality, quantities in weights and measures, etc.);
• the details of the transaction (e.g., whether an outright purchase,
consignment, intracompany transfer or other type of transaction);
• the purchase price of each item in the currency of the purchase;
• the type of currency;
• all charges upon the merchandise (including commissions, insurance, freight,
cases, containers, coverings, and cost of packing);
• all rebates, drawbacks and bounties, etc.; and
• the circumstances surrounding the shipment of the merchandise (e.g., port of
entry, the place from which shipped, the time when and the person to whom
shipped, etc.).

For additional information, importers may wish to consult the informed compliance
publication entitled “What Every Member of the Trade Community Should Know
About: Records and Recordkeeping Requirements.”

Additionally, for transactions for which preferential tariff treatment under 9802.00.80
is claimed, there must be filed, in accordance with section 10.24, Customs
Regulations (19 CFR 24):

1) A Declaration by the Assembler, executed by the person who performed
the assembly operations abroad, that in substantially the following format,
states:

I, _______, declare that to the best of my knowledge and belief, the
_______ were assembled in whole or in part from fabricated components
listed and described below, which are products of the United States.

________________________________________________________
Marks of Description of Quantity Unit Value at time Port and date Name and
identification component and place of export of export from address of
numbers from United States United States manufacturer

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2) An Endorsement by the Importer, executed by the importer, that in
substantially the following format, states:

I, declare that to the best of my knowledge and belief, the (above),
(attached) declaration, and any other information submitted herewith, or
otherwise supplied or referred to, is correct in every respect and there has
been compliance with all pertinent legal notes to the Harmonized Tariff
Schedule of the United States (19 U.S.C. 1202).

Date Signature

Address Capacity

Normally, if the pertinent data (i.e., assembly description, list of U.S. components,
their unit costs, etc.) is on file at the appropriate CBP office, entry may be made by
referring to this information. However, specific cost data or other necessary
information may be required with each entry depending upon the procedure agreed
to by the importer and the import specialist.

Sources of Information

The importer has the primary responsibility for supplying the information required by
CBP. Some of this information will be in the importer’s own records. In other cases,
however, the importer will have to make arrangements for the foreign assembler to
supply the information. In either case, the information used is that which is
contained in the commercial accounts of the importer and/or assembler, and is
subject to review and audit by CBP.

Updating Information

Information submitted to CBP must be both factual and current, and the importer has
the responsibility to notify CBP whenever there is any significant variation from the
data on file. Cost data should be updated whenever there is a significant change in
basic labor costs, fringe benefits paid to assembly workers, material costs, assist
costs, general expenses, or other cost factors that affect the monies paid by the
importer for the imported merchandise. In addition, CBP should be informed when
there is a change in either the country of origin of the components or in the assembly
operations. In any case, updated cost data should be furnished at least every six
months.

In making entry, the importer should constantly be alert in order to ensure that
documents submitted to CBP are complete and truthful in every respect. Serious
consequences can follow the inadvertent or willful distortion of facts involved in
entering merchandise.

Valuation

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Many importers have the misconception that duty under 9802.00.80 is based upon
the “value added” abroad. Instead, the law requires that the appraised value of the
merchandise be determined first; only then is an allowance made for the cost or
value of those components which are products of the United States that meet all the
requirements of subheading 9802.00.80.

For purposes of establishing the appraised value of merchandise imported under
subheading 9802.00.80, the valuation principles of Section 402 of the Tariff Act, as
amended (19 U.S.C. 1401a), and the judicial and administrative precedents
concerning value, apply equally to goods imported under subheading 9802.00.80 as
to any other imported merchandise. Thus, 9802.00.80 merchandise may be
appraised on the basis of transaction value, deductive value, computed value, or any
other appropriate statutory basis. The allowance for U.S.-manufactured components
eligible for 9802.00.80 treatment will ordinarily be predicated on the cost of each
component at the time of last purchase. To obtain further information regarding
methods of computation and customs value, importers may wish to consult the
informed compliance publication entitled “What Every Member of the Trade
Community Should Know About: Customs Value” and the “Customs Valuation
Encyclopedia.”

The primary method of appraisement for imported merchandise is transaction value.
The transaction value of imported merchandise is defined as the price actually paid
or payable for the merchandise when sold for exportation to the United States, plus
certain enumerated items. If transaction value cannot be determined, then the next
statutorily acceptable basis of appraisement will be used. When imported
merchandise is appraised under computed value, for example, the value includes the
sum of the cost or value of the materials and the fabrication and other processing,
and an amount for profit and general expenses, any assists, and packing costs. The
elements of computed value are discussed below in more detail.

Material and Components

The material cost, for customs purposes, is the cost contained in the accounts of the
producer or assembler of:

(a) purchased material, including transportation and freight costs to the
assembly factory, or
(b) if not purchased, the cost of manufacture of the material.

If the material is supplied to the assembler at no cost or at a reduced cost, this
material cost is also to be included. Such material costs will be further discussed
under the subsection entitled “Assists.”

The cost of materials as reflected in the books of the foreign assembler will be used,
provided that the cost is consistently applied and is in accordance with generally
acceptable accounting principles in the country of production and in the industry
concerned.

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U.S.-fabricated component cost or value for subheading 9802.0080 purposes is
explained in the section discussing the “Applicability of Subheading 9802.00.80”
within the subsection entitled “Value of Fabricated Components.”

Foreign Plant Expenses

Labor and Fabrication Costs – relates to both direct and indirect expenses necessary
for the assembly of the imported article. These expenses, as reflected in the
company’s commercial accounts, are to be considered in determining the value of
the merchandise for customs purposes.

General and Administrative Expenses – covers all other costs that are involved in the
foreign operation that support the labor and fabrication operation, such as
equipment, rent, electricity, and all other supportive facilities, administration, etc.
These examples are not exhaustive; the cost or value of the categories that will
ultimately be considered is dependent upon the manner in which they are contained
in the accounts of the assembler, provided that the company’s commercial accounts
are consistent with generally accepted accounting principles applied in the country of
production of the imported merchandise.

Assists

“Assists” are certain items and services which were furnished directly or indirectly by
the importer or buyer to the assembler, at less than full cost or value, for use in the
production of the imported article. Assists are limited to:

• materials, components, parts and similar items incorporated in the production
of imported merchandise,
• tools, dies, molds, and similar items used in producing the imported
merchandise,
• merchandise consumed in producing the imported merchandise, and
• engineering, development, artwork, design work, plans and sketches that are
undertaken outside the United States.

Materials and Components

If materials and components are supplied free of charge to the foreign assembler,
the value of this material assist will be the cost to the importer to acquire it, plus any
transportation and insurance costs to ship the material to the assembly plant.

If the materials and components were produced by the importer or a related party,
the value of the assist would be the cost to manufacture the material plus the
transportation costs to deliver the material to the assembler’s facility. The value of
the merchandise consumed in producing the imported merchandise is determined in
the same manner as the value of the materials and components.

Tools, Dies, Molds and Similar Items

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Where tools, dies, molds and similar items are used in the production of the imported
merchandise, the value of the assist would be the cost to the importer to acquire it. If
the assist was produced by the importer or a related party, the value would be the
cost to manufacture the assist. Any previous use or repairs and modifications that
affect its current value should be taken into consideration in arriving at the current
value of the assist. The transportation costs to the assembler’s plant are also
included in the assist value.

The assist value will be apportioned over the imported merchandise in a reasonable
manner and in accordance with generally accepted accounting principles.

Engineering, Development, Artwork, Design Work, Plans, Sketches,
etc.

These will not be treated as an assist if the service or work is:

(1) performed by a person domiciled in the United States,
(2) performed while that person is acting as an employee or agent of
the buyer of the imported merchandise, and
(3) incidental to other engineering, development, artwork, design work,
plans or sketches undertaken within the United States.

Finally, whether considering the value of materials, foreign plant expenses, or
assists, it is the facts and the evidence substantiating the claims that underlie the
determination of the value or costs of these items that will be utilized for customs
entry. Only after the value of all items has been determined will any applicable
9802.00.80 allowance be applied. Accordingly, it is strongly advised that the
importer establish close communication and cooperation with the appropriate import
specialist at the port of entry.

Country of Origin Marking

Goods for which a claim under subheading 9802.00.80 is made are subject to the
requirements of the country of origin marking statute, section 304, Tariff Act of 1930,
as amended (19 U.S.C. 1304). Section 304 requires an article of foreign origin (or its
container) imported into the United States to be marked with the English name of the
country of origin of the article, as legibly, indelibly and permanently as the nature of
the article (or container) will permit. The country of origin of an article is the country
of manufacture, production or growth of the article. If further work or material added
to an article in another country constitutes a substantial transformation – that is, a
new article with a different name, character and use is created – then that country
will be considered the country of origin of the article. In general, a complex
assembly of many parts will constitute a substantial transformation whereas a simply
assembly will not.

Country of Origin Marking for Goods of a NAFTA Country

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For marking purposes, the country of origin of a good of a NAFTA country will be
determined by applying the NAFTA marking rules, published in the Customs
Regulations at 19 CFR Part 102.

Country of Origin of Textiles and Apparel Products

The country of origin for textiles and apparel products, except for those processed in
Israel, is determined by section 334 of the Uruguay Round Agreements Act, codified
in the United States Code at 19 U.S.C. 3592 and implemented by regulation at
section 102.21, Customs Regulation (19 CFR 102.21). In general, section 102.21
provides that the assembly of cut components will confer origin, but the cutting of
fabric to shape will not confer origin. Although foreign fabric cut to shape in the
United States is not considered a product of the United States, the value of these
textile components is not included in the dutiable value of the article, as provided in
section 10.25, Customs Regulations (19 CFR 10.25). Fabric woven and cut to
shape in the United States and assembled abroad may be entered under
subheading 9802.00.80. The country of origin for textile and apparel products
processed in Israel is determined in accordance with section 12.130(c), Customs
Regulations (19 CFR 12.130(c)), which provides generally that the origin of most
garments is the country in which the components are cut to shape (although for
tailored or complex garments, the country of origin is the country in which the
garments are wholly assembled). For more information on this topic, see the CBP
informed compliance publication entitled “What Every Member of the Trade
Community Should Know About: Textile & Apparel Rules of Origin.”

The requirements regarding labeling, radiation standards, flame-retarding properties,
etc., that are applicable to imported textile and apparel articles are equally applicable
to 9802.00.80 merchandise. Quota and visa requirements also apply to 9802.00.80
merchandise. The Federal Trade Commission (“FTC”) has labeling requirements
which may also apply. For additional information, please consult the CBP informed
compliance publication entitled “What Every Member of the Trade Community
Should Know About: Marking Requirements for Wearing Apparel.”

Special Programs and Special Rules
AGOA and CBTPA

On May 18, 2000, Public Law 106-200, the Trade and Development Act of 2000 (the
“Act”), was signed into law. Title I of the Act, which is entitled “African Growth and
Opportunity Act” (“AGOA”), extends certain trade benefits to sub-Saharan Africa.
Title II, which is entitled the “United States-Caribbean Basin Trade Partnership Act”
(“CBTPA”) provides certain benefits to countries and territories in the Caribbean
Basin.

Certain textile and apparel articles that are imported directly into the customs
territory of the United States from an eligible beneficiary sub-Saharan African country
or an eligible beneficiary CBTPA country will enter the United States free of duty and
free of any quantitative limitations, if the country has satisfied the requirements set
forth in the Act. The Harmonized Tariff Schedule of the United States (“HTSUS”)
was amended by inserting new U.S. notes in subchapter II of Chapter 98 and the

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new subchapters XIX and XX in Chapter 98 to cover the new benefits. The
9802.00.80 provisions which were added by this legislation are:

• Apparel articles assembled in one or more beneficiary sub-Saharan African
countries from fabrics wholly formed and cut in the United States, from yarns
wholly formed in the United States, (including fabrics not formed from yarns,
if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS
and are wholly formed and cut in the United States) that are entered under
subheading 9802.00.80 of the HTSUS (subheading 9802.00.8042);

• Apparel articles assembled in one or more CBTPA beneficiary countries from
fabrics wholly formed and cut in the United States, from yarns wholly formed
in the United States, (including fabrics not formed from yarns, if those fabrics
are classifiable under heading 5602 or 5603 of the HTSUS and are wholly
formed and cut in the United States) that are entered under subheading
9802.00.80 of the HTSUS (subheading 9802.00.8044);

• Textile luggage assembled in a CBTPA beneficiary country from fabric wholly
formed and cut in the United States, from yarns wholly formed in the United
States, that is entered under subheading 9802.00.80 of the HTSUS
(subheading 9802.00.8046);

The 9802.00.80 provisions under both the AGOA and CBTPA have their
own rules, including rules on the treatment of findings and trimmings, specific
interlinings, and de minimis for fibers or yarns which would otherwise not qualify. In
addition, there are special requirements regarding certificates of origin, direct
importation and recordkeeping. These 9802.00.80 provisions are briefly discussed
above for general information purposes only. For detailed information regarding the
provisions, importers are advised to consult the informed compliance publications
entitled:

• “What Every Member of the Trade Community Should Know About: The
African Growth and Opportunity Act”, and

• “What Every Member of the Trade Community Should Know About: The U.S.-
Caribbean Basin Trade Partnership Act”.

Mexico

In addition to the provisions listed above, there is a special provision in subheading
9802.00.90 for certain textile and apparel goods assembled in Mexico. This
provision covers:

• Textile and apparel goods, assembled in Mexico in which all fabric
components were wholly formed and cut in the United States, provided that
such fabric components, in whole or in part, (a) were exported in condition
ready for assembly without further fabrication, (b) have not lost their physical
identity in such articles by change in form, shape or otherwise, and (c) have
not been advanced in value or improved in condition abroad except by being

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assembled and except by operations incidental to the assembly process;
provided that goods classifiable in chapters 61, 62 or 63 of the HTSUS may
have been subject to bleaching, garment dyeing, stone-washing, acid-
washing or perma-pressing after assembly.

Obtaining Pre-Importation (Advance) Rulings

Normally, appraisement and classification decisions will be made by the local import
specialist. However, these decisions are advisory in nature. A formal binding ruling
may be obtained by contacting the Office of Regulations and Rulings. A request for
a ruling regarding either valuation or the eligibility for merchandise for the duty
allowance provided by subheading 9802.00.80 should be addressed to the Assistant
Commissioner, Office of Regulations and Rulings at the following address:

Office of Regulations and Rulings
Commercial and Trade Facilitation Division
U.S. Customs and Border Protection
1300 Pennsylvania Avenue, N.W. (Mint Annex)
Washington, D.C 20229

A request for a ruling regarding the tariff classification of an imported article should
be addressed to the Director, National Commodity Specialist Division at the following
address:

Office of Regulations and Rulings
National Commodity Specialist Division
U.S. Customs and Border Protection
th
One Penn Plaza – 10 Floor
New York NY 10119

Additional Information

The Internet

The home page of U.S. Customs and Border Protection on the Internet’s World Wide
Web, provides the trade community with current, relevant information regarding CBP
operations and items of special interest. The site posts information -- which includes
proposed regulations, news releases, publications and notices, etc. -- that can be
searched, read on-line, printed or downloaded to your personal computer. The web
site was established as a trade-friendly mechanism to assist the importing and
exporting community. The web site also links to the home pages of many other
agencies whose importing or exporting regulations that U.S. Customs and Border
Protection helps to enforce. The web site also contains a wealth of information of
interest to a broader public than the trade community. For instance, on June 20,
2001, CBP launched the “Know Before You Go” publication and traveler awareness
campaign designed to help educate international travelers.

The web address of U.S. Customs and Border Protection is http://www.cbp.gov

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Customs Regulations

The current edition of Customs Regulations of the United States is a loose-leaf,
subscription publication available from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC 20402; telephone (202) 512-1800. A
bound, 2003 edition of Title 19, Code of Federal Regulations, which incorporates all
changes to the Regulations as of April 1, 2003, is also available for sale from the
same address. All proposed and final regulations are published in the Federal
Register, which is published daily by the Office of the Federal Register, National
Archives and Records Administration, and distributed by the Superintendent of
Documents. Information about on-line access to the Federal Register may be
obtained by calling (202) 512-1530 between 7 a.m. and 5 p.m. Eastern time. These
notices are also published in the weekly Customs Bulletin described below.

Customs Bulletin

The Customs Bulletin and Decisions (“Customs Bulletin”) is a weekly publication that
contains decisions, rulings, regulatory proposals, notices and other information of
interest to the trade community. It also contains decisions issued by the U.S. Court
of International Trade, as well as customs-related decisions of the U.S. Court of
Appeals for the Federal Circuit. Each year, the Government Printing Office
publishes bound volumes of the Customs Bulletin. Subscriptions may be purchased
from the Superintendent of Documents at the address and phone number listed
above.

Importing Into the United States

This publication provides an overview of the importing process and contains general
information about import requirements. The February 2002 edition of Importing Into
the United States contains much new and revised material brought about pursuant to
the Customs Modernization Act (“Mod Act”). The Mod Act has fundamentally altered
the relationship between importers and U.S. Customs and Border Protection by
shifting to the importer the legal responsibility for declaring the value, classification,
and rate of duty applicable to entered merchandise.

The February 2002 edition contains a section entitled "Informed Compliance." A key
component of informed compliance is the shared responsibility between U.S.
Customs and Border Protection and the import community, wherein CBP
communicates its requirements to the importer, and the importer, in turn, uses
reasonable care to assure that CBP is provided accurate and timely data pertaining
to his or her importation.

Single copies may be obtained from local offices of U.S. Customs and Border
Protection, or from the Office of Public Affairs, U.S. Customs and Border Protection,
1300 Pennsylvania Avenue NW, Washington, DC 20229. An on-line version is
available at the CBP web site. Importing Into the United States is also available for
sale, in single copies or bulk orders, from the Superintendent of Documents by
calling (202) 512-1800, or by mail from the Superintendent of Documents,
Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7054.

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Informed Compliance Publications

U.S. Customs and Border Protection has prepared a number of informed compliance
publications in the “What Every Member of the Trade Community Should Know
About:...” series. Check the Internet web site
http://www.cbp.gov for current
publications.

Value Publications

Customs Valuation under the Trade Agreements Act of 1979 is a 96-page book
containing a detailed narrative description of the customs valuation system, the
customs valuation title of the Trade Agreements Act (§402 of the Tariff Act of 1930,
as amended by the Trade Agreements Act of 1979 (19 U.S.C. §1401a)), the
Statement of Administrative Action which was sent to the U.S. Congress in
conjunction with the TAA, regulations (19 C.F.R. §§152.000-152.108) implementing
the valuation system (a few sections of the regulations have been amended
subsequent to the publication of the book) and questions and answers concerning
the valuation system. A copy may be obtained from U.S. Customs and Border
Protection, Office of Regulations and Rulings, Value Branch, 1300 Pennsylvania
Avenue, NW, (Mint Annex), Washington, D.C. 20229.

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory
provisions, CBP Regulations implementing the statute, portions of the Customs
Valuation Code, judicial precedent, and administrative rulings involving application of
valuation law. A copy may be purchased for a nominal charge from the
Superintendent of Documents, Government Printing Office, P.O. Box 371954,
Pittsburgh, PA 15250-7054. This publication is also available on the Internet web site
of U.S. Customs and Border Protection.

The information provided in this publication is for general information
purposes only. Recognizing that many complicated factors may be
involved in customs issues, an importer may wish to obtain a ruling
under CBP Regulations, 19 C.F.R. Part 177, or obtain advice from an
expert (such as a licensed Customs Broker, attorney or consultant)
who specializes in customs matters. Reliance solely on the general
information in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from U.S. Customs and Border
Protection ports of entry. Please consult your telephone directory for an office near
you. The listing will be found under U.S. Government, Department of Homeland
Security.

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“Your Comments are Important”

The Small Business and Regulatory Enforcement Ombudsman and 10 regional
Fairness Boards were established to receive comments from small businesses about
Federal agency enforcement activities and rate each agency’s responsiveness to
small business. If you wish to comment on the enforcement actions of U.S. Customs
and Border Protection, call 1-888-REG-FAIR (1-888-734-3247).

U.S. Customs and Border Protection
Washington, D.C. 20229

Visit our Internet web site: http://www.cbp.gov
TO REPORT DRUG SMUGGLING
1 (8000) BE ALERT

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