G/TFA/W/7  
 
6 August  2018 
(18-4975) Page: 1/6 
Committee on Trade Facilitation  Original: English  
 
THE ROLE OF ADVANCE RULINGS AND  ADMINISTRATIVE PROCE DURES  
IN TFA IMPLEMENTATION  
COMMUNICATION FROM T HE UNITED STATES  
The following communication , dated 6 August  2018, is being circulated at the request of the 
delegation of the United States for Members' information.  
 
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1  INTRODUCTION  
The historic WTO Agreement on Trade Facilitation (TFA) en tered into force on 22 February  2017, 
establishi ng binding obligations for WTO M embers to improve their customs procedures to foster 
more transparent, eff icient, and collaborative interaction between border regulatory agencies and 
the private sector.  
 
Among the obligations in the TFA are the commitments on advance rulings, set out in Section I, 
Article 3. Advance rulings are a proven means of facilitating t rade, promoting transparency and 
consistency in customs operations, and fostering the participation of small and medium sized 
enterprises in global commerce. In fact, in its 2011 Trade Policy Working Paper (No. 118) entitled, 
Trade Facilitation Indicators,  the Organization for Economic Cooperation and Development (OECD) 
described advance rulings as "the most signifi cant trade facilitation measure" .1 
 
The TFA requires each WTO Member to issue advance rulings on the tariff classification and 
country of origin  of imported goods. In addition, it encourages Members to issue rulings on 
customs valuation, the applicability of the Member 's requirements for relief or exemption from 
customs duties (such as drawback programs), the application of tariff rate quotas, and  other 
subjects that the Member may consider appropriate.  
 
In addition to the basic requirement to issue rulings, the TFA includes procedural commitments for 
fairness and transparency  in how Members issue rulings. The TFA requires that the procedures and 
timeline for obtaining an advance ruling be published and that Members specify  how long a ruling 
will apply. A Member also shall endeavor to make publicly available any information on advance 
rulings that it considers to be of significant interest to other  interested parties, taking into account 
the need to protect commercially confidential information. In addition, the TFA requires Members 
to provide for appeals of advance rulings and for the modification and revocation of advance 
rulings.  
 
The United Stat es Customs and Border Protection 's (CBP) rulings program provides the 
international trade community with a transparent and efficient means of understanding how CBP 
will treat a particular import once it arrives in the United States and also provides the tr ade 
community with mechanisms to interact with CBP even after a good has been entered.  
 
This paper 's goal is to describe the key features of the United States rulings program and to 
demonstrate how it implements the TFA obliga tions–and goes beyond –to provi de significant 
benefits to the trading community.  
                                                
1 Moïsé, E., T. Orliac  and P. Minor (2011), "Trade Facilitation Indicators: The Impact on Trade Costs", 
OECD Trade Policy Papers, No. 118, p.19, OECD Publishing, Paris. http://dx.doi.org/10.1787/5kg6nk654hmr -
en. G/TFA/W/7  
 
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2  THE RULINGS PROGRAM AT CBP  
The US  Customs Service began offering advance rulings as Treasury Decisions and Customs 
Service Decisions as far back as the late 1960s. In 1994, Title VI of the North American F ree Trade 
Agreement Implementation Act, also known as the Customs Modern ization Act, came into effect. 
Two central concepts emerged from the act –"informed compliance " and " shared responsibility ". 
The premise of both concepts is that the trading community s hould be well informed of its legal 
and regulatory obligations to maximize voluntary com pliance with CBP requirements. 
Correspondingly, the Modernization Act imposes a greater obligation on CBP to provide the public 
with infor mation on the trading communit y's rights and responsibilities. Advance rulings are an 
important part of this infor mation sharing responsibility. As described below, the modernization 
program brought with it changes to the CBP rulings program in terms of publication and 
modification of rulings that are reflected in the TFA.  
 
3  THE ESSENTIAL CHARAC TER OF A GOOD RULING S PROGRAM  
In accordance with the TF A and our own experience, the US  considers that an effective advance 
rulings regime has the followin g characteristics:  
 
• Rulings are simple to  obtain and issued in a timely manner;  
• Rulings are legally binding;  
• Rulings are published, and the rulings process is transparent;  
• Confidential information is protected;  
• Rulings set the customs practice throughout the United States  for that good for all 
traders;  
• There is effective communication externally (with the publi c) concerning rulings matters;  
• There is effective communication internally (within customs) to support a rulings 
regime ; 
• The advance rulings system pro motes uniformi ty and fairness.  
 
These elements not only help establish and maintain an effective and useful advance rulings 
program, but they provide an environment that enables CBP to establish a body of decisions 
providing guidance to the trade community at each stage  in the processi ng of an import 
transaction.  
 
Rulings are simple to obtain  
An advance rulings regime requires that the Customs authority inform the public of the availability 
and requirements of advance rulings and make them accessible. For a 21st Century customs 
operation, accessibility means availability on the internet. CBP delineates the requirements and 
other information about its rulings program in published regulations, available in print and online. 
In the United States, Part 177 (Administrative Rul ings) of Tit le 19 (Customs Duties) of the US  
Code of Federal Regulations provides the regulatory authority for the US  advance ruling process. 
The regulations, which are cited as 19 CFR 177, can be accessed  from the US  Government Printing 
Office  at https://www.gpo.gov/fdsys/granule/CFR -2012-title19 -vol2/CFR -2012-title19 -vol2-
part177 . These regulations provide the necessary detail to the trade regarding how, when, where, 
and why  to request an advance ruling.  
 
Requests for advance rulings from CBP can be filed by letter or online using the electronic rulings 
template ( https://apps.cbp.gov/erulings/index.as p). Rulings are issued free of charge.  The 
information must be in a written request and CBP has published guidance on the information 
required, but CBP does not require a speci fic form for making a request.  
 
Any importer, exporter, other interested party or the authorized agent of these persons may 
request a binding ruling from CBP. Requesting a ruling is straightforward and simple. The request 
must be written in English and contain a statement of the relevant fact s relating to the transaction. 
The request  also gives the requester the opportunity to provide a statement of its view about how 
the transaction should be treated a nd the basis for its position. Of course, any relevant documents 
to the request such as photographs, drawings, a sample of the good, i nvoices, contracts, and 
product descriptions are all important i nclusions to a ruling request. When all the relevant 
information is included, CBP can efficiently address the subject  matter of the ruling request. G/TFA/W/7  
 
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  Requests for confidentiality, or for a confe rence to discuss the issues presented in the ruling 
request, should also be included in the ruling request.  
 
The requester sends the request for a ruling to CBP' s Office of Regulations and Rulings.  The 
requester will receive an acknowledgm ent of receipt of  the request.  
 
Most ruling requests go to the National Commodity Specialist Division (NCSD) in New York, which 
consists of 48 National Import Specialists and 39 National Import Specialists Associates, who are 
specialists in a grou ping of particular commodi ties. The subjects addressed by NCSD rulings are: 
Tariff Classification; Country of Origin; Country of Origin Marking; and Eligibility for Preferential 
Treatment under Free Trade Agreements (FTAs), except for questions con cerning regional value 
content.  NCSD typically responds to ruling reque sts within 30 days.  The ruling the requester 
receives will be concise and will direct ly address the question posed.  
 
The most common binding ruling requests are about tariff classification of the imported good, 
because the tariff classification determines the rate of the duties relevant to the application of 
many legal instruments (import/export licenses, rules of origin, anti -dumping dutie s, security 
standards, etc.).  
 
All other requests go to Headquarters (HQ) Regulati ons and Rulings, housed in Washi ngton , D.C. 
This office issues rulings on a broader array of topics including: Tariff Classification; Eligibility for 
Preference under NAFTA and other Trade Agreements; Application of the Navigation laws; 
Drawback Determinat ions; Foreign Trade Zone and other Duty Deferral Programs; Marking and 
other Country of Origin issues; Liquidation and Reliquidation of entries; Customs Va luation; and 
Entry Procedures. Because these rulings may involve more complex issues, they typically take 90 
to 120 days to complete . 
 
In the course of evaluating an advance ruling request, CBP may solicit supplemental information 
from the person  requesting the advance ruling.  The submission of supplemental information wil l 
extend the time for response.  CBP also will extend the time for response if it needs to obtain 
information from other government agencies or  perform a laboratory analysis.  If a request for an 
advance ruling does not contain adequate specific information to provide a binding ruling, th e 
requester will receive general inf ormation regarding the matter.  
 
To apply an advance ruling to a transaction, an importer must attach a copy (electronically is 
accepted) of the advance ruling letter to the documents filed with the appropriate CBP office  in 
connection with that transaction or must otherwise indicate that an adv ance ruling has been 
received. When a trader relies on an advance ruling, the customs field office will verify the 
application of the ruling to the transaction. The CBP office at th e port of entry must be satisfied 
that the transaction described in the ruling is the same  as what actually takes place.  
 
Rulings are legally binding, ensuring that the importing community can rely on the 
decision  
A ruling represents the official position of CBP with respect to the particular transaction or issue 
described therein and is binding on both CBP and the reques ter until modified or revoked. The 
principal benefit for the holder is the assurance that the decision will be applied at the border at 
the importation.  
 
Rulings are published, and the rulings process is transparent  
As part of the Customs Modernization Act, CBP is required to publish adva nce rulings.2 Originally, 
the rulin gs were published in the agency' s bound volumes, and then in the agency’s weekly 
gazette. However, since 2002, rulings have been published on the Customs Rulings Online Search 
System (CROSS), which is accessible via the CBP website or directly using the following hype rlink: 
http:// rulings.cbp.gov . The CROSS database contains rulings issue d from 1989 until the present. 
CROSS is searchable by anyone, anywhere in the world and allows any person to download and 
print rulings free of charge. CROSS increases predictability of CBP action a nd provides consistency 
in decisi ons made by the field offices. All importers benefit, not just those who request rulings, 
because they can search for rulings that have similar facts to their business, learn how CBP has 
                                                
2 See 19  U.S.C. §1625.  G/TFA/W/7  
 
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  treated transactions like theirs, an d determine whether to request more specific in formation in 
their own ruling.  
 
Last year CBP issued more than 4,800 advance rulings, and as of April 2018, there are over 
198,000 rulings available on CROSS. CROSS also includes modifications and revocations of 
advance rulings, as well as internal advice decisions and protest review de cisions.  Likewise, the 
rulings on CROSS cover all matters for which CBP has enforcement authority. Those topics include: 
tariff classification, valuation, country of origin, duty  drawback, duty deferral, applicability of any 
quota or tariff quota, eligibility under preference programs, applicability of navigation and 
cabotage laws (i.e., dredging, towing, and passenger laws), and treatment of goods in transit.  
 
Protection of comme rcially confidential information  
Since rulings are published, there must be a method to protect commerc ially confidential 
information.  Requesters have the right to request that certain designated information provided as 
part of the ruling request be kept c onfidential and not included in the published ruling. In practice, 
CBP and the requester often discuss the specific requests to balance the need to have legally 
sufficient advance rulings while protecting inform ation that is confidential.  
 
Additionally, if  information is clearly business confidential, CBP still does not disclose that 
information even if the requester did not make a s pecific request to protect it.  
 
This regulatory scheme promotes trust between C BP and the importer community. Privileged, 
classified, or specific information (such as trade secrets) for which there is a clear and compelling 
need to withhold from disclosure are not  included in published rulings.  But by publishing the 
rulings, CBP honors the public’s right to know with regard to go vernment decision maki ng. These 
practices provide transparency and protect confidentiality.  
 
Rulings set the customs practice throughout the United States for that good for all 
traders  
In addition to being binding and timely for the requester, CBP rulings provide guidance to others in 
the trade community with the same merchandise. Because many rulings provide a detailed 
description of the merchandise and an in -depth discussion of the applicable law and the issues 
presented, they represent a rich resource fo r brokers, importers, and import specialists to 
understand how CBP will treat their merchandise. Technically, an advance ruling letter is only 
binding for the transaction described therein. However, if CBP determines that the merchandise is 
the same in all  material respects to that described in the ruling, the ruling will apply.  
 
Most rulings are never modified or revoked and remain in effect indefinit ely, with no fixed 
expiration. However, when a change in position is needed because of new information or 
circumstances, the rulings process allows CBP to change its views with attention to procedural 
safeguards and opportunities for the trade to provide input.  Before changing or revoking a ruling, 
CBP is required to publish the proposal in its gazette for publ ic comment.  The public is given a 30 -
day comment period be fore a final decision is made. When a final decision is published, it is 
effective 60 calendar days after publication. This delayed effective date of a modification or 
revocation gives the trade tim e to adapt to  the new ruling.  
 
Effective external communication is essential  
External communication with the trade community is also vital, especially with regard to a 
particular ruling letter. At CBP, importers may request a conference in writing, to discuss the 
issues in their request for an advance ruling, at the tim e the ruling request is filed.3 The 
conference affords the importer the opportunity to supplement the request with pictorial 
representations of the good  or even a sample of the good. Conferences are scheduled to afford the 
parties an opportunity to freely and openly discuss the matters set forth in the advance ruling 
reques t before the ruling is issued. CBP will consider the issues presented before proc eeding with 
the ruling letter. The tw o-way communication builds confidence in the rulings program.  
                                                
3 This may be an importer, exporter, other interested parties; or the authorized agent (e.g., attorney or 
broker) of these parties, which is consistent with TFA Article 3.9(c), states that a ruling "applicant"  is an 
exporter, importer or any  person with a justifiable cause or a representative thereof.  G/TFA/W/7  
 
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Of course, the notice and comment procedures for the issuance of modifications or revocations of 
particular rulings also afford stakeholders the ability to communicate concerns or support for a  
customs acti on before a decision is final.  
 
In addition, CBP communicates with the trading community through its Informed Compliance 
Publications (ICPs). This series, " What Every Member of the Tra de Community Should Know 
About:  …", is published on its website at www.cbp.gov/trade/rulings/informed -compliance -
publications . CBP's Regulations and Rulings Directorate has issued and maintains the ICPs on n ew 
or revised requirements, regulations or procedures, and on a wide variety of classification and 
valuation issues. The Regulations and Rulings Directorate also provides public outreach sessions or 
training on all technical trade and legal areas.  
 
Effecti ve communication within CBP  
CBP’s Regulations and Rulings Direc torate issues advance rulings. The directorate has three 
divisions responsible for the rulings. The NCSD in New York City has four branches: Metals, 
Machinery, Chemicals, Manufacturing Material s and Petroleum; Electronic, Agricultural, Footwear, 
Automotive and Aerospace; Textiles and Wearing Apparel; and Consumer Pr oducts and Mass 
Merchandising. The  above -referenced eRulings program helps provides the infrastructure for NCSD 
to contribute to CBP 's robust rulings program.  
 
The Commercial and Trade Facilitation Division and the Border Security and Trade Compliance 
Division are at CBP he adquarters in Washington, D.C. Each division has five and three branches, 
respectively, that issue advance rulin gs on a broad array of topics.  
 
Within CBP’s Regulations and Rulings Directorate, the HQ and NCSD offices communicate o n a 
regular and ongoing basis. Regulations and Rulings also frequently communicate with the CBP 
personnel located at the Centers of Excelle nce and Expertise on specific imports or compliance 
issues within a particular industry.  In addition to teleconferences and email, internal 
communication at CBP is facilitated by the Automated Commercial Environment (ACE), the primary 
system through which the trade community reports imports and exports and the government 
determines admissibil ity, and which serves as the single window.  
 
The advance rulings system promotes uniformity and fairness  
As discussed above, CBP actively engages the importing commun ity before taking final action.  CBP 
issues rulings and other decisions that importers can use for guidance for the merchandise 
described in the ruling, whether or not  the ruling was issued to them.  CBP publishes its rulings so 
that any member of the public can access them in print or online. CBP has clear regulations that 
are also freely availa ble online and that govern every  aspect of its rulings program. All these 
aspects of CBP' s rulings program make it uniform in application.  
 
In addition to publication practices to support uniformity, requesters have access to a judicial 
review of the advan ce ruling in the Court  of International Trade (CIT). The CIT has national 
jurisdiction over matters that arise out of the customs and international tr ade laws of the United 
States. Decisions by the CIT are bi nding on Customs and importers.  CIT decisions ca n be appealed 
to the Court of Appeals for the Federal Circuit, which is located in Washington, D.C., and then, in 
rare instances, may be considered by the Supreme Court of the United States. This robust system 
of judicial review provides a vital element of  fairness to the trade community.  
 
Through these procedural safeguards  and transparent practices, CBP' s administrative rulings 
program also promotes fairness for traders and consistent and efficient application of customs 
laws. 
 
Conclusion  
An advance rulin gs regime fosters openness , efficiency, and transparency.  An advance rulings 
program is key aspect of a modern customs administration and provides a vital service to the 
trade community in the form of predictab ility, certainty, and fairness.  
 G/TFA/W/7  
 
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  The system pr ovides a process under which rulings are simple to obtain, legally binding, timely 
provided, and made publicly available while protecting confidential in formation.  The system is 
supported by consistent and transparent communicatio n within CBP and with trad ers. 
 
The United States encourages all Members to share their views and experiences concerning 
advance rulings, including the different scale and practices in their advance rulings programs and 
the use of adva nce rulings by their exporters.  The United Stat es further encourages Members to 
share these views with a view toward full TFA implementation and achieving its aims of further 
expediting the movement, release and clearance of good s, including goods in transit. The US  looks 
forward to working with Member s seeking further information in establishing an advance rulings 
regime or expanding an existing advance rulings program.  
 
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