U.S.-Morocco Free Trade Agreement Frequently Asked Questions (FAQ’s)

Question #13: Can an importer submit a Declaration to CBP dated after the preference claim?

Answer #13: An exporter or producer Declaration signed after the date of the preference claim could not have been in the importer’s possession at the time of such claim. However, if the preference claim is based on importer’s knowledge, no exporter/producer certification is required.

Requesting Documentation and Verification

Question #14: CBP has requested that the importer provide documentation substantiating that the good originates. Morocco has a wholly the growth, product, or manufacture" or Value Content + 19 CFR 102 or Product-Specific Tariff shift. What information must be provided?

Answer #14: The information required to substantiate an origination claim depends on the rule of origin and the nature of the good. In the case of a manufactured good using a product-specific rule of origin in GN 27(h), at a minimum, the following documentation should be provided:

• copy of the product specific rule of origin
• descriptive literature, diagrams, etc. to support classification of the imported good
• bill of materials (with a description, HTSUS number, and the originating status of each material)
• affidavit or certification attesting to the originating status of all originating materials that would otherwise fail the product-specific rule
• cost data, if the product-specific rule has a regional value content (RVC) requirement
• the regional value content (RVC) calculation US/Morocco materials + direct cost of processing at least (35%) of appraised value. 19 CFR 10.770; 19 CFR 10.773-776; GN 27(b) & (c).

Question #15: CBP has requested manufacturing information to substantiate the originating status of a good, but as the importer, I do not have those records in my possession. Must I comply?

Answer #15: Yes, the importer is responsible for ensuring that CBP receives documentation substantiating that the good meets a rule of origin and otherwise complies with the terms of the U.S.-Morocco FTA. If the importer hasn’t the information, he should contact the exporter and/or producer to ensure that the information is provided to CBP. To protect confidentiality, a manufacturer may provide documentation directly to CBP. Per 19 CFR 103.35, CBP is barred from releasing business confidential information to the importer or any other party without obtaining consent.

Question #16: If CBP requests a Supporting Statement, can the importer provide it via fax or as an email attachment?

Answer #16: Yes, CBP will accept a digitized certification of origin as long as it contains a handwritten signature or the image of a handwritten signature.

Origination

Question #17: How does a good “originate” under the U.S.-Morocco FTA?

Answer #17: In order to be an “originating” good, a good must meet a rule of origin and all other requirements (GN 27 and 19 CFR 10.770).

Question #18: What are the rules of origin under the U.S.-Morocco FTA?

Answer #18: Generally speaking, a good will originate if:

1. The good is wholly obtained or produced entirely in the territory of Morocco or of the United States, or both; or
2. The good is produced entirely in the territory of Morocco or of the United States, or both, satisfies all other applicable requirements of this subpart, and
   1. Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 27(h), HTSUS and
   2. The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 27(h), HTSUS; or
3. The good is produced entirely in the territory of Morocco or the United States, or both, exclusively from originating materials. (19 CFR 10.770)

Question #19: How does a producer know if a material used to produce his good originates?

Answer #19: Generally speaking, the producer will know that a material originates because his supplier will provide a certification or affidavit upon request. If a material supplier will not provide a certification or affidavit, then the producer should consider the material to be non-originating.

Question #20: If the imported good is substantially manufactured in Morocco, can the U.S. importer assume that it meets the terms of the U.S.-Morocco FTA and make a preference claim?

Answer #20: No, the importer would not be exercising reasonable care and may be subject to penalties if the good were found not to originate. By making a preference claim, the importer is certifying that the good meets the terms of the agreement and that the importer/exporter/producer will provide CBP with substantiating documentation upon request.

Question #21: Can a chemical reaction result in origination?

Answer #21: No, there is no chemical reaction rule of origin for goods of HTSUS Chapter 27 from Morocco.

Question #22: Can purification result in origination?

Answer #22: No, there is no purification rule of origin for goods of HTSUS chapter 27.

Question #23: What is the Repair and Alteration Provision?

Answer #23: Repair and Alteration Provision rules that apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in Morocco as provided for in subheadings 9802.00.40 and 9802.00.50, 19 CFR 10.787.

Question #24: Is there a provision to allow for goods to originate even if they have been commingled with non-originating goods? What if originating materials have been commingled with non- originating materials?

Answer #24: No, there is no fungible goods and material provision for the Morocco FTA.

Question #25: What does it mean when a producer says that a good meets a product-specific rule of origin?

Answer #25: It means that all non-originating materials, with the possible exception of a small de minimis value, used to produce the good undergo a tariff shift prescribed in General Note 27(h).

Question #26: What is de minimis?

Answer #26: There is no de minimis rule for the Morocco FTA.

Question #27: What if the good in question does not have a product-specific rule of origin?

Answer #27: For the Morocco FTA tariff items are (Certain goods in HTSUS 6-9, 12-13, 20-22, 39, 42, 50-63, 70, 72, 85, 87 & 94) all other are either Wholly the growth, or 35% DCP + VOM, and new article of commerce Unlimited US value may count towards 35%.

Regional Value Content (RVC)

Question #28: When should the RVC formula be used under the U.S.-Morocco FTA?

Answer #28: The RVC formula should be used where it applies (Direct cost of processing, value of originating materials, adjusted value of imported goods.

Question #29: When performing the RVC calculation, how is the value of the good and the materials used to produce it determined? What adjustments can be made?

Answer #29: The value of a good and its constituent materials is determined in accordance with General Note 27(b)(ii), (c), (f) and 19 CFR 10.770.

Indirect Materials

Question #30: How does the U.S.-Morocco FTA treat indirect materials?

Answer #30 Indirect materials are to be disregarded in determining whether a good qualifies as an originating good under 19 CFR 10.777 of this subpart and General Note 27 (d) (v), HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in 19 CFR 10.770(b) of this subpart.

Third Country Transportation

Question #31: May a U.S.-Morocco FTA claim be made on goods that entered the commerce of a non-Party or that were further processed while under customs control in a non-Party country?

Answer #31: Yes, Imported Directly: May leave customs' control, may not undergo further production in a 3rd country, limited operations specified; GN 27(d)(v); 19 CFR 10.777.

Goods Subject to Tariff Rate Quotas

Question #32: Does the U.S.-Morocco FTA provide for Tariff Rate Quotas?

Answer #32: No, Morocco quotas ended January 1, 2015.

U.S. Goods Returned

Question #33: May U.S. goods returned from Morocco to the United States be claimed under the U.S.-Morocco FTA?

Answer #33: No, U.S. goods returned cannot be claimed under the U.S.-Morocco FTA, but may be exempt from duty under HTSUS 9801.00.10.

Merchandise Processing Fee (MPF)

Question #34: Are originating goods exempt from MPF under the U.S.-Morocco FTA?

Answer #34: No, there is no exemption from MPF per 19 CFR 24.23(c).

Duty Rates and Staging (Phase Out)