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Administrative Law

: Customs Law

Credit for US Parts in Repairs

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Customs and Border Protection is proposing to amend its regulations to create an incentive to use U.S.-origin parts in foreign repairs and alterations.  

Currently, the customs regulations (at 19 CFR 10.8(d)) require the deposit of duties based on the full cost of the repair including the value of domestic and foreign components.  The proposed change will eliminate the reference to domestic components.  The intention is to allow an exclusion from dutiable value for the cost of U.S.-origin articles used in the repair or alteration and creates an incentive to seek out U.S.-origin parts for use in foreign repair and alteration operations.

A similar change was proposed for 19 CFR 10.9 relating to foreign processing.

This could be a boon to U.S. parts manufacturers where the finished article is dutiable when returned to the U.S.

Full post as published by Customs Law on March 13, 2009 (boomark / email).

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