A "new or different article of commerce" refers to a product that has undergone a significant transformation, resulting in a good that possesses a new name, character, or use that is distinct from the original material. This definition is important in understanding how goods are classified under trade agreements and customs regulations.
This term is primarily used in customs law and trade regulations, particularly in relation to the United States-Jordan Free Trade Agreement. It helps determine whether goods qualify for preferential tariff treatment based on their transformation. Legal practitioners may encounter this term in cases involving international trade, customs compliance, and import/export regulations. Users can manage some related processes themselves using legal templates from US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A manufacturer takes raw steel and transforms it into a finished automobile. The automobile is considered a new article of commerce due to its significant change in form and function.
Example 2: A company imports raw coffee beans, roasts them, and packages them for retail sale. The roasted coffee is classified as a new article of commerce since it has undergone substantial transformation (hypothetical example).
19 CFR 10.702 outlines the definition and criteria for determining what constitutes a new or different article of commerce under U.S. customs law. This regulation is part of the broader framework governing international trade agreements.
| Term | Definition |
|---|---|
| Substantial Transformation | A process where a good is altered to the extent that it becomes a new product with a different name or use. |
| Article of Commerce | A general term for any product that is bought and sold in commerce. |
If you believe your goods may qualify as a new or different article of commerce, review the criteria outlined in 19 CFR 10.702. It may be beneficial to consult with a customs attorney or use US Legal Forms to access templates that can assist in the compliance process. If your situation is complex, seeking professional legal advice is recommended.
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A substantial transformation occurs when a product is changed significantly in form, character, or use, resulting in a new product.