Source: https://www.law.cornell.edu/uscode/text/19/3332?quicktabs_8=3
Timestamp: 2016-05-02 20:50:11
Document Index: 566375047

Matched Legal Cases: ['§ 3332', '§ 3332', '§ 3332', '§\u202f81', '§\u202f21', '§\u202f21']

19 U.S. Code § 3332 - Rules of origin | US Law | LII / Legal Information Institute
U.S. Code › Title 19 › Chapter 21 › Subchapter II › § 3332 19 U.S. Code § 3332 - Rules of origin
(a) Originating goods
(1) In generalFor purposes of implementing the tariff treatment and quantitative restrictions provided for under the Agreement, except as otherwise provided in this section, a good originates in the territory of a NAFTA country if—
(i) each nonoriginating material used in the production of the good—
(D) except for a good provided for in chapters 61 through 63 of the HTS, the good is produced entirely in the territory of one or more of the NAFTA countries, but one or more of the nonoriginating materials, that are provided for as parts under the HTS and are used in the production of the good, does not undergo a change in tariff classification because—
(A) Foreign-trade zones
(B) Regional value-content requirement
For purposes of subparagraph (D) of paragraph (1), a good shall be treated as originating in a NAFTA country if the regional value-content of the good, determined in accordance with subsection (b) of this section, is not less than 60 percent where the transaction value method is used, or not less than 50 percent where the net cost method is used, and the good satisfies all other applicable requirements of this section.
(b) Regional value-content
(1) In generalExcept as provided in paragraph (5), the regional value-content of a good shall be calculated, at the choice of the exporter or producer of the good, on the basis of—
(2) Transaction value method
tv–vnm
100 tv
(B) DefinitionsFor purposes of subparagraph (A):
(3) Net cost method
100 nc
(4) Value of nonoriginating materials used in originating materials
Except as provided in subsection (c)(1) of this section, and for a motor vehicle identified in subsection (c)(2) of this section or a component identified in Annex 403.2 of the Agreement, the value of nonoriginating materials used by the producer in the production of a good shall not, for purposes of calculating the regional value-content of the good under paragraph (2) or (3), include the value of nonoriginating materials used to produce originating materials that are subsequently used in the production of the good.
(5) Net cost method must be used in certain casesAn exporter or producer shall calculate the regional value-content of a good solely on the basis of the net cost method described in paragraph (3), if—
the exporter or producer chooses to accumulate the regional value-content of the good in accordance with subsection (d) of this section; or
(6) Net cost method allowed for adjustments
(7) Review of adjustmentNothing in paragraph (6) shall be construed to prevent any review or appeal available in accordance with article 510 of the Agreement with respect to an adjustment to or a rejection of—
(8) Calculating net costThe producer may, consistent with regulations implementing this section, calculate the net cost of a good under paragraph (3), by—
(9) Value of material used in productionExcept as provided in paragraph (11), the value of a material used in the production of a good—
(B) if not included under clause (i) or (ii) of subparagraph (A), shall include—
(10) Intermediate material
Except for goods described in subsection (c)(1) of this section, any self-produced material, other than a component identified in Annex 403.2 of the Agreement, that is used in the production of a good may be designated by the producer of the good as an intermediate material for the purpose of calculating the regional value-content of the good under paragraph (2) or (3); provided that if the intermediate material is subject to a regional value-content requirement, no other self-produced material that is subject to a regional value-content requirement and is used in the production of the intermediate material may be designated by the producer as an intermediate material.
(11) Value of intermediate materialThe value of an intermediate material shall be—
(12) Indirect material
(c) Automotive goods
(1) Passenger vehicles and light trucks, and their automotive partsFor purposes of calculating the regional value-content under the net cost method for—
the value of nonoriginating materials used by the producer in the production of the good shall be the sum of the values of all nonoriginating materials, determined in accordance with subsection (b)(9) of this section at the time the nonoriginating materials are received by the first person in the territory of a NAFTA country who takes title to them, that are imported from outside the territories of the NAFTA countries under the tariff provisions listed in Annex 403.1 of the Agreement and are used in the production of the good or that are used in the production of any material used in the production of the good.
(2) Other vehicles and their automotive partsFor purposes of calculating the regional value-content under the net cost method for a good that is a motor vehicle provided for in heading 8701, subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, a motor vehicle for the transport of 16 or more persons provided for in subheading 8702.10.00 or 8702.90.00, or a component identified in Annex 403.2 of the Agreement for use as original equipment in the production of the motor vehicle, the value of nonoriginating materials used by the producer in the production of the good shall be the sum of—
(A) for each material used by the producer listed in Annex 403.2 of the Agreement, whether or not produced by the producer, at the choice of the producer and determined in accordance with subsection (b) of this section, either—
the value of any other nonoriginating material used by the producer that is not listed in Annex 403.2 of the Agreement determined in accordance with subsection (b) of this section.
(3) Averaging permitted
(B) Category describedA category is described in this subparagraph if it is—
(4) Annex 403.1 and Annex 403.2For purposes of calculating the regional value-content for any or all goods provided for in a tariff provision listed in Annex 403.1 of the Agreement, or a component or material identified in Annex 403.2 of the Agreement, produced in the same plant, the producer of the good may—
(A) average its calculation—
(5) Phase-in of regional value-content requirementNotwithstanding Annex 401 of the Agreement, and except as provided in paragraph (6), the regional value-content requirement shall be—
(A) for a producer’s fiscal year beginning on the day closest to January 1, 1998, and thereafter, 56 percent calculated under the net cost method, and for a producer’s fiscal year beginning on the day closest to January 1, 2002, and thereafter, 62.5 percent calculated under the net cost method, for—
(B) for a producer’s fiscal year beginning on the day closest to January 1, 1998, and thereafter, 55 percent calculated under the net cost method, and for a producer’s fiscal year beginning on the day closest to January 1, 2002, and thereafter, 60 percent calculated under the net cost method, for—
(6) New and refitted plantsThe regional value-content requirement for a motor vehicle identified in paragraph (1) or (2) shall be—
(A) 50 percent for 5 years after the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, if—
(7) Election for certain vehicles from Canada
(1) Determination of originating goodFor purposes of determining whether a good is an originating good, the production of the good in the territory of one or more of the NAFTA countries by one or more producers shall, at the choice of the exporter or producer of the good, be considered to have been performed in the territory of any of the NAFTA countries by that exporter or producer, if—
(2) Treatment as single producer
For purposes of subsection (b)(10) of this section, the production of a producer that chooses to accumulate its production with that of other producers under paragraph (1) shall be treated as the production of a single producer.
(e) De minimis amounts of nonoriginating materials
(1) In generalExcept as provided in paragraphs (3), (4), (5), and (6), a good shall be considered to be an originating good if—
provided that the good satisfies all other applicable requirements of this section and, if the good is subject to a regional value-content requirement, the value of such nonoriginating materials is taken into account in calculating the regional value-content of the good.
(2) Goods not subject to regional value-content requirementA good that is otherwise subject to a regional value-content requirement shall not be required to satisfy such requirement if—
(3) Dairy products, etc.Paragraph (1) does not apply to—
(B) a nonoriginating material provided for in chapter 4 of the HTS or a dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90.30, 1901.90.40, or 1901.90.80 that is used in the production of—
(C) a nonoriginating material provided for in heading 0805 or subheadings 2009.11 through 2009.30 that is used in the production of—
(I) a nonoriginating material used in the production of—
(4) Certain fruit juicesParagraph (1) does not apply to a nonoriginating single juice ingredient provided for in heading 2009 that is used in the production of—
(5) Goods provided for in chapters 1 through 27 of the HTS
(6) Goods provided for in chapters 50 through 63 of the HTS
(f) Fungible goods and materialsFor purposes of determining whether a good is an originating good—
(g) Accessories, spare parts, or tools
(1) In generalExcept as provided in paragraph (2), accessories, spare parts, or tools delivered with the good that form part of the good’s standard accessories, spare parts, or tools shall—
(2) ConditionsParagraph (1) shall apply only if—
(h) Indirect materials
(i) Packaging materials and containers for retail sale
(j) Packing materials and containers for shipmentPacking materials and containers in which a good is packed for shipment shall be disregarded—
(k) Transshipment
A good shall not be considered to be an originating good by reason of having undergone production that satisfies the requirements of subsection (a) of this section if, subsequent to that production, the good undergoes further production or any other operation outside the territories of the NAFTA countries, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the territory of a NAFTA country.
(l) Nonqualifying operationsA good shall not be considered to be an originating good merely by reason of—
(m) Interpretation and applicationFor purposes of this section:
In applying subsection (a)(4) of this section, the determination of whether a heading or subheading under the HTS provides for and specifically describes both a good and its parts shall be made on the basis of the nomenclature of the heading or subheading, the rules of interpretation, or notes of the HTS.
(4) In applying the Customs Valuation Code—
the definitions in subsection (p) of this section shall take precedence over the definitions in the Customs Valuation Code to the extent of any difference.
(n) Origin of automatic data processing goods
(o) Special rule for certain agricultural productsNotwithstanding any other provision of this section, for purposes of applying a rate of duty to a good provided for in—
subheading 2008.11 that is exported from the territory of Mexico, if any material provided for in heading 1202 used in the production of that good is not wholly obtained in the territory of Mexico, or
(p) DefinitionsFor purposes of this section—
(1) Class of motor vehiclesThe term “class of motor vehicles” means any one of the following categories of motor vehicles:
(2) Customs Valuation Code
(3) F.O.B.
(4) Fungible goods and fungible materials
(5) Generally Accepted Accounting Principles
(6) Goods wholly obtained or produced entirely in the territory of one or more of the NAFTA countriesThe term “goods wholly obtained or produced entirely in the territory of one or more of the NAFTA countries” means—
(I) waste and scrap derived from—
(7) Identical or similar goods
(8) Indirect material
(A) The term “indirect material” means a good—
(B) When used for a purpose described in subparagraph (A), the following materials are among those considered to be indirect materials:
(9) Intermediate material
The term “intermediate material” means a material that is self-produced, used in the production of a good, and designated pursuant to subsection (b)(10) of this section.
(10) Marque
(12) Model line
(13) Motor vehicle assembler
(14) NAFTA country
(15) New building
(16) Net cost
(17) Net cost of a good
The term “net cost of a good” means the net cost that can be reasonably allocated to a good using one of the methods set out in subsection (b)(8) of this section.
(18) Nonallowable interest costs
(19) Nonoriginating good; nonoriginating material
(20) Originating
(21) Producer
(22) Production
(23) Reasonably allocate
(24) Refit
(25) Related personsThe term “related persons” means persons specified in any of the following subparagraphs:
(26) RoyaltiesThe term “royalties” means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright, literary, artistic, or scientific work, patent, trademark, design, model, plan, secret formula, or process. It does not include payments under technical assistance or similar agreements that can be related to specific services such as—
(27) Sales promotion, marketing, and after-sales service costsThe term “sales promotion, marketing, and after-sales service costs” means the costs related to sales promotion, marketing, and after-sales service for the following:
(28) Self-produced material
(29) Shipping and packing costs
(30) Size categoryThe term “size category” means with respect to a motor vehicle identified in subsection (c)(1)(A) of this section—
(31) Territory
(32) Total cost
(33) Transaction value
Except as provided in subsection (c)(1) or (c)(2)(A) of this section, the term “transaction value” means the price actually paid or payable for a good or material with respect to a transaction of the producer of the good, adjusted in accordance with the principles of paragraphs 1, 3, and 4 of Article 8 of the Customs Valuation Code and determined without regard to whether the good or material is sold for export.
(34) Underbody
(q) Presidential proclamation authority
(1) In generalThe President is authorized to proclaim, as a part of the HTS—
any additional subordinate category necessary to carry out this title [1] consistent with the Agreement.
(2) ModificationsSubject to the consultation and layover requirements of section 3313 of this title, the President may proclaim—
a modified version of the definition of any term set out in subsection (p) of this section (and such modified version of the definition shall supersede the version in subsection (p) of this section), but only if the modified version reflects solely those modifications to the same term in article 415 of the Agreement that are agreed to by the NAFTA countries before December 8, 1994.
(3) Special rules for textilesNotwithstanding the provisions of paragraph (2)(A), and subject to the consultation and layover requirements of section 3313 of this title, the President may proclaim—
Act of June 18, 1934, referred to in subsec. (a)(2)(A), is act June 18, 1934, ch. 590, 48 Stat. 998, as amended, which is classified generally to chapter 1A (§ 81a et seq.) of this title. For complete classification of this Act to the Code, see Tables.
Section 202 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in subsec. (c)(7), is section 202 of Pub. L. 100–449, which is set out in a note under section 2112 of this title.
This title, referred to in subsec. (q)(1)(B), is title II of Pub. L. 103–182, Dec. 8, 1993, 107 Stat. 2068, which enacted this subchapter, amended sections 58c, 81c, 1304, 1311 to 1313, 1508, 1509, 1514, 1520, 1562, 1592, and 1628 of this title, and enacted provisions set out as notes under sections 58c, 1304, and 3331 of this title.
1998—Subsec. (n). Pub. L. 105–206 struck out “most-favored-nation” before “rate of duty”.
1996—Subsec. (m)(4)(C). Pub. L. 104–295, § 21(a)(2)(A), substituted “subsection (p)” for “subsection (o)”.
Subsec. (p)(18). Pub. L. 104–295, § 21(a)(2)(B), substituted “Federal Government” for “federal government”.
Section effective on the date the North American Free Trade Agreement enters into force with respect to the United States [Jan. 1, 1994], see section 213(b) of Pub. L. 103–182, set out as a note under section 3331 of this title.