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ARTICLES

LEGAL RESOURSES

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    • Article 509. Advance Rulings

    1. Each Party shall, through its customs administration, provide for the expeditious issuance of written advance rulings, prior to the importation of a good into its territory, to an importer in its territory or an exporter or a producer in the territory of another Party, on the basis of the facts and circumstances presented by such importer, exporter or producer of the good, concerning:

  • Whether materials imported from a non-Party used in the production of a good undergo an applicable change in tariff classification set out in Annex 401 as a result of production occurring entirely in the territory of one or more of the Parties;

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  • Whether a good satisfies a regional value-content requirement under either the transaction value method or the net cost method set out in Chapter Four;

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  • For the purpose of determining whether a good satisfies a regional value-content requirement under Chapter Four, the appropriate basis or method for value to be applied by an exporter or a producer in the territory of another Party, in accordance with the principles of the Customs Valuation Code, for calculating the transaction value of the good or of the materials used in the production of the good;

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  • For the purpose of determining whether a good satisfies a regional value-content requirement under Chapter Four, the appropriate basis or method for reasonably allocating costs, in accordance with the allocation methods set out in the Uniform Regulations, for calculating the net cost of the good or the value of an intermediate material;

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  • Whether a good qualifies as an originating good under Chapter Four;

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  • Whether a good that re-enters its territory after the good has been exported from its territory to the territory of another Party for repair or alteration qualifies for dutyfree treatment in accordance with Article 307 (TLCAN: Art. 307) (Goods Re-Entered after Repair or Alteration);

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  • Whether the proposed or actual marking of a good satisfies country of origin marking requirements under Article 311 (Country of Origin Marking);

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  • Whether an originating good qualifies as a good of a Party under Annex 300B (TLCAN: Anexo 300-B) (Textile and Apparel Goods), Annex 302.2 (TLCAN: Anexo 302.2) (Tariff Elimination) or Chapter Seven (Agriculture and Sanitary and Phytosanitary Measures);

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  • Whether a good is a qualifying good under Chapter Seven; or

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  • Such other matters as the Parties may agree.

    • 2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including a detailed description of the information reasonably required to process an application for a ruling.

    3. Each Party shall provide that its customs administration:

  • May, at any time during the course of an evaluation of an application for an advance ruling, request supplemental information from the person requesting the ruling;

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  • Shall, after it has obtained all necessary information from the person requesting an advance ruling, issue the ruling within the periods specified in the Uniform Regulations; and

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  • Shall, where the advance ruling is unfavorable to the person requesting it, provide to that person a full explanation of the reasons for the ruling.

    • 4. Subject to paragraph 6, each Party shall apply an advance ruling to importations into its territory of the good for which the ruling was requested, beginning on the date of its issuance or such later date as may be specified in the ruling.

    5. Each Party shall provide to any person requesting an advance ruling the same treatment, including the same interpretation and application of provisions of Chapter Four regarding a determination of origin, as it provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.

    6. The issuing Party may modify or revoke an advance ruling:

  • If the ruling is based on an error

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  • Of fact,

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  • In the tariff classification of a good or a material that is the subject of the ruling,

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  • In the application of a regional value content requirement under Chapter Four,

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  • In the application of the rules for determining whether a good qualifies as a good of a Party under Annex 300B (TLCAN: Anexo 300-B), 302.2 (TLCAN: Anexo 302.2) or Chapter Seven,

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  • In the application of the rules for determining whether a good is a qualifying good under Chapter Seven, or

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  • In the application of the rules for determining whether a good that re-enters its territory after the good has been exported from its territory to the territory of another Party for repair or alteration qualifies for dutyfree treatment under Article 307 (TLCAN: Art. 307);

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  • If the ruling is not in accordance with an interpretation agreed by the Parties regarding Chapter Three (National Treatment and Market Access for Goods) or Chapter Four;

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  • If there is a change in the material facts or circumstances on which the ruling is based;

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  • To conform with a modification of Chapter Three, Chapter Four, this Chapter, Chapter Seven, the Marking Rules or the Uniform Regulations; or
  • To conform with a judicial decision or a change in its domestic law.

    • 7. Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.

    8. Notwithstanding paragraph 7, the issuing Party shall postpone the effective date of such modification or revocation for a period not exceeding 90 days where the person to whom the advance ruling was issued demostrates that it has relied in good faith to its detriment on that ruling.

    9. Each Party shall provide that where its customs administration examines the regional value content of a good for which it has issued an advance ruling pursuant to subparagraph 1(c), (d) or f), it shall evaluate whether:

  • The exporter or producer has complied with the terms and conditions of the advance ruling;

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  • The exporter's or producer's operations are consistent with the material facts and circumstances on which the advance ruling is based; and

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  • The supporting data and computations used in applying the basis or method for calculating value or allocating cost were correct in all material respects.

    • 10. Each Party shall provide that where its customs administration determines that any requirement in paragraph 9 has not been satisfied, it may modify or revoke the advance ruling as the circumstances may warrant.

    11. Each Party shall provide that, where the person to whom an advance ruling was issued demonstrates that it used reasonable care and acted in good faith in presenting the facts and circumstances on which the ruling was based, and where the customs administration of a Party determines that the ruling was based on incorrect information, the person to whom the ruling was issued shall not be subject to penalties.

    12. Each Party shall provide that where it issues an advance ruling to a person that has misrepresented or omitted material facts or circumstances on which the ruling is based or has failed to act in accordance with the terms and conditions of the ruling, the Party may apply such measures as the circumstances may warrant.