The Customs Regulations, 19 CFR 191, list four primary criteria in determining whether merchandise is commercially interchangeable. Alliance ascertains which of the below categories applies to your organization as part of the full range of services provided. The criteria are as follows:
Industry Specifications – Many commodities are covered by published industry standards utilized by buyers and sellers of the commodity to determine the quality or grade of a particular material. There are a variety of national and global organizations that have established industry wide specifications for numerous products including agricultural, steel, and titanium. Standards and specifications are published by the USDA, ASTM (American Society for Testing Materials), and ANSI.
Classification from the Tariff Schedule of the United States – Both the imported and the exported merchandise must fall within the same HTS classification.
Part Numbers – If both the import and the export carry the same part number, Customs will most likely consider them commercially interchangeable.
Relative Value – The import and export must sell for approximately the same price, allowing for reasonable markup and other costs that are factored into the export sales price.