CBP's Interim Rule on Country of Origin of Textile and Apparel Products (Textile Declaration Eliminated, MID to Identify Origin-Conferring Manufacturer, Etc.) (Part II - Final)
U.S. Customs and Border Protection (CBP) has issued an interim rule, effective October 5, 2005, which it states amends 19 CFR Parts 12, 102, 141, 144, 146 and 163 in order to update, restructure, and consolidate the regulations relating to the country of origin of textile and apparel products.
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CBP states that the interim rule reflects changes brought about, in part, by the expiration on January 1, 2005, of the Agreement on Textiles and Clothing (ATC) and the resulting elimination of quotas on the entry of textile and apparel products from World Trade Organization (WTO) members (except for textile and apparel products subject to safeguard actions taken under China's Accession Agreement to the WTO).
This is Part II, the final part of a multi-part series of summaries on this interim rule, and highlights the regulatory text of the interim rule.
(See ITT's Online Archives or 10/06/05 news, 05101605, for BP summary highlighting the primary regulatory changes discussed in the preamble to the regulatory text (i.e., the elimination of the textile declaration, and the requirement that the Manufacturer Identification Code (MID) identify the origin-conferring textile manufacturer.)
Highlights of the Interim Rule's 19 CFR Regulatory Text
New 102.22 (rules of origin for textile and apparel products of Israel)
As a number of the provisions of 12.130 are out-of-date, CBP states it is revising and redesignating former 12.130 as new 102.22. CBP states that it is also clarifying that new 102.22 applies, pursuant to Section 334 of the Uruguay Round Agreements Act (URAA), only to textile and apparel products that are products of Israel.
Included in new 102.22, is paragraph (a) which pertains to goods wholly the product of Israel and products that undergo a substantial transformation in Israel, etc., and paragraph (d), which covers situations where, after applying 102.22 (a) - (c), Israel is determined to not be the country of origin of the textile or apparel product, etc.
(As part of its revision of 12.130, CBP states it is removing paragraph (c) on the origin of certain textile or apparel products of the U.S. or the insular possessions of the U.S. that are exported for processing and returned, as it has no relevance to products of Israel; and, with the expiration of the ATC, CBP believes this paragraph is unnecessary.1
Paragraph (f) regarding the textile declaration, is also removed as the textile declaration requirement for all imported textile and apparel products is eliminated by this interim rule.)
New 102.23 (MID of origin-conferring manufacturer, etc.)
New 102.23(a) requires that all entries of textile or apparel products listed in 102.21(b)(5)2 identify on CBP Form 3461 (Entry/Immediate Delivery) and CBP Form 7501 (Entry Summary) and in all electronic data transmissions that require identification of the manufacturer, the manufacturer of such products through a manufacturer identification code (MID) constructed from the name and address of the entity performing the origin-conferring operations pursuant to 102.21 or 102.22, as applicable.
This code must be accurately constructed using the methodology set forth in the Appendix to this part, including the use of the ISO code for the country of origin of such products.
When a single entry is filed for products of more than one manufacturer, the products of each manufacturer must be separately identified.
If an entry filed for such merchandise fails to include the MID properly constructed from the name and address of the manufacturer, the port director may reject the entry or take other appropriate action.
New 102.23(b) (Incomplete or insufficient information) and new 102.23(c) (Date of exportation) are largely updated versions of former 12.130(g) and (i), respectively.
New 102.24 and 102.25
New 102.24 (Entry of textile or apparel products) is generally an updated version of former 12.131, while new 102.25 (Textile or apparel products under the North American Free Trade Agreement (NAFTA)) is generally an updated version of former 12.132.
New Appendix
A new "Appendix to Part 102 - Textile and Apparel Manufacturer Identification" is also added to set forth the rules for the proper construction of MIDs.
1 See ITT's Online Archives or 07/18/00 news, 00071702 for BP summary of
Customs final interpretive rule that 12.130(c) no longer applies for Customs country of
origin marking purposes (however, at that time, sources had added that 12.130(c)
would continue to apply for duty and quota/visa purposes).
2 this regulation defines textile and apparel products as any good classified in
Harmonized Tariff Schedule (HTS) Chapters 50-63 plus certain listed tariff numbers
outside this chapter range.
(Note that both the Department of Homeland Security (DHS) and the Department of Treasury are listed as the issuing departments.)
- written comments due by December 5, 2005
| Robert Abels (Operational) | (202) 344-1959 |
| Cynthia Reese (Legal) | (202) 572-8812 |
CBP interim rule (CBP Dec. 05-32; USCBP-2005-0009, FR Pub 10/05/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-19985.pdf