Friday, August 1, 2008

Customs and Border Protection Proposes Uniform Rules of Origin for Imported Merchandise

The C.B.P. is proposing extending the codified rules of origin, 19 C.F.R. 102, to all imported goods, unless otherwise specified. Currently, the C.B.P. has two primary methods it uses to determine the country of origin. The first method is a case by case method applying a "substantially transformed" test, while the other is a codified process that uses changes in tariff classification, tariff shifts, to express the logic behind the "substantially transformed" test. The C.B.P. has been formally discussing this shift since September of 1991, however it decided not to expand the rules outlined in Part 102 beyond NAFTA countries and textile imports in 1996. The current proposal will extend the codified process to all imports except those governed by the Department of Commerce under trade remedy laws.

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