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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Foreign Assembly of U.S. Components 

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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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Foreign Assembly of U.S. Components 

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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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Foreign Assembly of U.S. Components 

April 2006 

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, acidwashing 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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Foreign Assembly of U.S. Components 

April 2006 

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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Foreign Assembly of U.S. Components 

April 2006 

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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Foreign Assembly of U.S. Components 

April 2006 

“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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