[Title 19 CFR 177.9]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[Title 19 - CUSTOMS DUTIES]
[Chapter I - UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY]
[Part 177 - ADMINISTRATIVE RULINGS]
[Subpart A - General Ruling Procedure]
[Sec. 177.9 - Effect of ruling letters; modification or revocation.]
[From the U.S. Government Printing Office]


19CUSTOMS DUTIES22002-04-012002-04-01false177.9Sec. 177.9CUSTOMS DUTIESUNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURYADMINISTRATIVE RULINGSGeneral Ruling Procedure
Sec. 177.9  Effect of ruling letters; modification or revocation.

    (a) Effect of ruling letters generally. A ruling letter issued by 
the Customs Service under the provisions of this part represents the 
official position of the Customs Service with respect to the particular 
transaction or issue described therein and is binding on all Customs 
Service personnel in accordance with the provisions of this section 
until modified or revoked. In the absence of a change of practice or 
other modification or revocation which affects the principle of the 
ruling set forth in the ruling letter, that principle may be cited as 
authority in the disposition of transactions involving the same 
circumstances. Generally, a ruling letter is effective on the date it is 
issued and may be applied to all entries which are unliquidated, or 
other transactions with respect to which the Customs Service has not 
taken final action on that date. See, however, paragraphs (d) and (e) 
(ruling letters which modify previous ruling letters or positions) and 
Sec. 177.10(e) (ruling letters published in the Customs Bulletin).
    (b) Application of rulings to transactions--(1) Generally. Each 
ruling letter is issued on the assumption that all of the information 
furnished in connection with the ruling request and incorporated in the 
ruling letter, either directly, by reference, or by implication, is 
accurate and complete in every material respect. The application of a 
ruling letter by a Customs Service field office to the transaction to 
which it is purported to relate is subject to the verification of the 
facts incorporated in the ruling letter, a comparison of the transaction 
described therein to the actual transaction, and the satisfaction of any 
conditions on which the ruling was based. If, in the opinion of any 
Customs Service field office by whom the transaction is under 
consideration or review, the ruling letter should be modified or 
revoked, the findings and recommendations of that office will be 
forwarded to the Headquarters Office for consideration, as provided in 
Sec. 177.11(b)(1)(i), prior to any final disposition with respect to the 
transaction by that office. Otherwise, if the transaction described in 
the ruling letter and the actual transaction are the same, and any and 
all conditions set forth in the ruling letter have been satisfied, the 
ruling will be applied to the transaction.
    (2) Tariff classification rulings. Each ruling letter setting forth 
the proper classification of an article under the provisions of the 
Harmonized Tariff Schedule of the United States will be applied only 
with respect to transactions involving articles identical to the sample 
submitted with the ruling request or to articles whose description is 
identical to the description set forth in the ruling letter.
    (3) Valuation rulings. Each ruling letter setting forth the proper 
valuation of an article under the provisions of section 402 of the 
Tariff Act of 1930, as amended (19 U.S.C. 1401a), will be applied only 
with respect to transactions involving the same merchandise and like 
facts.
    (4) Carrier rulings. Each ruling letter setting forth the 
applicability of the navigation laws to a vessel will be applied only 
with respect to transactions involving operations identical to those set 
forth in the ruling letter. Each ruling letter setting forth a 
determination as to whether or not the primary object of a contemplated 
voyage is coastwise transportation in violation of 46 U.S.C. 289 will be 
binding on the United States Customs Service with respect to any 
transaction identical to the facts and circumstances described in the 
ruling request and undertaken in reliance on the ruling letter.
    (c) Reliance on ruling letters by others. A ruling letter is subject 
to modification or revocation without notice to any person, except the 
person to whom the letter was addressed. Accordingly,

[[Page 339]]

no other person should rely on the ruling letter or assume that the 
principles of that ruling will be applied in connection with any 
transaction other than the one described in the letter. However, any 
person eligible to request a ruling under Sec. 177.1(c) may request 
information as to whether a previously-issued ruling letter has been 
modified or revoked by writing the Commissioner of Customs, Attention: 
Office of Regulations and Rulings, Washington, DC 20229, and either 
enclosing a copy of the ruling letter or furnishing other information 
sufficient to permit the ruling letter in question to be identified.
    (d) Modification or revocation of ruling letters--(1) Generally. Any 
ruling letter found to be in error or not in accordance with the current 
views of the Customs Service may be modified or revoked. Modification or 
revocation of a ruling letter shall be effected by Customs Headquarters 
by giving notice to the person to whom the ruling letter was addressed 
and, where circumstances warrant, by the publication of a notice or 
other statement in the Customs Bulletin.
    (2) Effect of modification or revocation of ruling letters. The 
modification or revocation of a ruling letter will not be applied 
retroactively with respect to the person to whom the ruling was issued, 
or to any person directly involved in the transaction to which that 
ruling related, Provided:
    (i) The request for a ruling contained no misstatement or omission 
of material facts,
    (ii) The facts subsequently developed are not materially different 
from the facts on which the ruling was based,
    (iii) There has been no change in the applicable law,
    (iv) The ruling was originally issued with respect to a prospective 
transaction, and
    (v) All of the parties involved in the transaction acted in good 
faith in reliance upon the ruling and retroactive modification or 
revocation would be to their detriment.

Nothing in this paragraph will prohibit the retroactive modification or 
revocation of a ruling with respect to a transaction which was not 
prospective at the time the ruling was issued, inasmuch as such a 
transaction was not entered into in reliance on a ruling from the 
Customs Service.

    (3) Effective dates. Generally, a ruling letter modifying or 
revoking an earlier ruling letter will be effective on the date it is 
issued. However, the Customs Service may, upon application or on its own 
initiative, delay the effective date of such a ruling for a period of up 
to 90 days from the date of issuance. Such a delay may be granted with 
respect to the party to whom the ruling letter was issued or to any 
other party, provided such party can demonstrate to the satisfaction of 
the Customs Service that they reasonably relied on the earlier ruling to 
their detriment. All parties applying for a delay will be issued a 
separate ruling letter setting forth the period, if any, of the delay to 
be provided. In appropriate circumstances, the Customs Service may 
decide to make its decision, with respect to a delay, applicable to all 
affected parties, irrespective of demonstrated reliance; in this event, 
a notice announcing the delay will be published in the Customs Bulletin 
and individual ruling letters will not be issued.
    (e) Ruling letters modifying past Customs treatment of transactions 
not covered by ruling letters--(1) General. The Customs Service will 
from time to time issue a ruling letter covering a transaction or issue 
not previously the subject of a ruling letter and which has the effect 
of modifying the treatment previously accorded by the Customs Service to 
substantially identical transactions of either the recipient of the 
ruling letter or other parties. Although such a ruling letter will 
generally be effective on the date it is issued, the Customs Service 
may, upon application by an affected party, delay the effective date of 
the ruling letter, and continue the treatment previously accorded the 
substantially identical transaction, for a period of up to 90 days from 
the date the ruling letter is issued.
    (2) Applications by affected parties. In applying to the Customs 
Service for a delay in the effective date of a ruling letter described 
in paragraph (e)(1) of this section, an affected party must demonstrate 
to the satisfaction of the Customs Service that the treatment

[[Page 340]]

previously accorded by Customs to the substantially identical 
transactions was sufficiently consistent and continuous that such party 
reasonably relied thereon in arranging for future transactions. The 
evidence of past treatment by the Customs Service shall cover the 2-year 
period immediately prior to the date of the ruling letter, listing all 
substantially identical transactions by entry number (or other Customs 
assigned number), the quantity and value of merchandise covered by each 
such transaction (where applicable), the ports of entry, and the dates 
of final action by the Customs Service. The evidence of reliance shall 
include contracts, purchase orders, or other materials tending to 
establish that the future transactions were arranged based on the 
treatment previously accorded by the Customs Service.
    (3) Decision by Customs to grant delay. The Customs Service will 
examine all factors relevant to the issue of reliance in determining 
whether, and for what period, to delay the effective date of a ruling 
letter described in paragraph (e)(1) of this section. In particular, the 
Customs Service will examine the past transactions on which reliance is 
claimed to determine whether there was an examination of the merchandise 
(where applicable) by the Customs Service or the extent to which those 
transactions were otherwise examined and analyzed by the Customs Service 
to determine the proper application of the Customs laws and regulations. 
In general, transactions involving small quantities or values, as well 
as informal entries and other entries or transactions which the Customs 
Service, in the interest of commercial facilitation and accommodation, 
processes expeditiously and without examination and/or import specialist 
review, will be given diminished weight in establishing the required 
history of consistent and continuous Customs treatment. Unless a notice 
covering all affected parties is published in the Customs Bulletin, each 
affected party applying for a delay in the effective date of the ruling 
letter will be advised in a separate ruling letter of the extent to 
which a delay in the effective date will be applied to their 
transactions.

[T.D. 75-186, 40 FR 31929, July 30, 1975, as amended by T.D. 80-285, 45 
FR 80105, Dec. 3, 1980; T.D. 84-149, 49 FR 28699, July 16, 1984; T.D. 
87-89, 52 FR 24446, July 1, 1987; T.D. 89-1, 53 FR 51271, Dec. 21, 1988; 
T.D. 89-74, 54 FR 31516, July 31, 1989]