| Title: | FACT SHEET 35 |
|---|---|
| Date: | 1994-05-23 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : LISA CROSBY
SUBJECT : NAF-FACT SHEET 35
DATE : 05/20/94
4136071
MAY 17, 1994
CATEGORY: NAF CO:TO:T:T LAC
TO : REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT
AND PORT DIRECTORS
FROM : DIRECTOR, OFFICE OF TRADE OPERATIONS
SUBJECT: FACT SHEET 35: CHANGED DEFINITION UNDER NAFTA OF
"ULTIMATE PURCHASER" FOR GOODS THE PRODUCTS OF CANADA
AND MEXICO
PASS TO: IMPORT SPECIALISTS, INSPECTORS AND OTHER INTERESTED
PARTIES SUCH AS NON-ABI BROKERS AND IMPORTERS
BACKGROUND:
ANNEX 311 OF THE NAFTA RELATES TO THE MARKING OF GOODS THAT
ARE THE PRODUCTS OF CANADA AND MEXICO. ANNEX 311(5)(B) EXEMPTS
VARIOUS GOODS THAT ARE THE PRODUCTS OF CANADA AND MEXICO FROM
COUNTRY OF ORIGIN MARKING REQUIREMENTS. ANNEX 311(5)(B)(IX)
EXEMPTS A GOOD THAT "BY REASON OF ITS CHARACTER, OR THE
CIRCUMSTANCES OF ITS IMPORTATION, THE ULTIMATE PURCHASER WOULD
REASONABLY KNOW ITS COUNTRY OF ORIGIN EVEN THOUGH IT IS NOT
MARKED."
ANNEX 311(11) DEFINES "ULTIMATE PURCHASER" AS THE LAST
PERSON IN THE IMPORTING COUNTRY THAT PURCHASES THE GOOD IN THE
FORM IN WHICH IT WAS IMPORTED; SUCH PURCHASER NEED NOT BE THE
LAST PERSON THAT WILL USE THE GOOD. PREVIOUSLY, 19 C.F.R.
134.1(D) DEFINED "ULTIMATE PURCHASER" AS THE RECIPIENT IN CASES
WHERE THE IMPORTED ARTICLE WAS TO BE DISTRIBUTED AS A GIFT.
19 C.F.R. 134.1(D) WAS AMENDED IN THE FEDERAL REGISTER NOTICE
DATED DECEMBER 30, 1993 (58 FR 69471). AS AMENDED, 19 C.F.R.
134.1(D)(4) NOW READS "IF THE IMPORTED ARTICLE IS DISTRIBUTED AS
A GIFT, THE RECIPIENT IS THE "ULTIMATE PURCHASER," UNLESS THE
GOOD IS A GOOD OF A NAFTA COUNTRY. IN THAT CASE, THE PURCHASER
OF THE GIFT IS THE ULTIMATE PURCHASER."
WITH THIS NEW DEFINITION, CATALOGUES AND BROCHURES (AS WELL
AS PENS AND OTHER GIFTS) GIVEN AWAY FOR FREE NO LONGER HAVE TO BE
MARKED WITH THEIR COUNTRY OF ORIGIN. THE COMPANY THAT PURCHASES
THEM FOR DISTRIBUTION IS CONSIDERED THE "ULTIMATE PURCHASER."
THE CONTAINERS IN WHICH THEY ARE IMPORTED ARE NOT REQUIRED TO BE
MARKED WITH THE COUNTRY OF ORIGIN OF THE GIVEAWAY ITEMS IF THE
"ULTIMATE PURCHASER" WOULD REASONABLY KNOW THEIR COUNTRY OF
ORIGIN BY REASON OF THE CIRCUMSTANCES OF THEIR IMPORTATION. IF
THE COMPANY CHARGES FOR THE GIVEAWAY ITEMS, THEY MUST BE MARKED.
NOTE, HOWEVER, THAT THIS RULE ONLY APPLIES TO GOODS THAT ARE THE
PRODUCTS OF CANADA OR MEXICO AS DETERMINED BY THE MARKING RULES.
QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO THE
NAFTA HELP DESK AT (202)927-0066.
PHILIP METZGER