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If the goods go through a significant change, incurred during overseas duty on the total cost, while overseas is required, including the cost of the components or materials. If the goods are first assembled, there is a provision that the obligation only to the cost of what is taking place overseas need without the cost of U.S. components or materials. For example, cut fabric before leaving the U.S. and overseas would ONLY stitched most likely be eligible for deployment.



The term "significant change" means in relation to the good (s) or material (s) to change as the result of a manufacturing or processing, so that:

• the good(s) or material(s) is converted from a good that has multiple uses into a good or material that has a limited uses
• the physical properties of the good or material are changed to a significant extent
• the operation underdone by the good(s) or material(s) is complex by reason of the number of processes and material involved and the time and level skill required to perform those processes
• the good(s) or material(s) loses its separate identity in the manufacturing or processing operation

For an example: A change to concentrated juice of any single fruit or vegetable fortified with vitamins or minerals of subheading 2106.90 from any other chapter or from juice of grapes, apples, pears, bananas, mangoes and carrots of heading 2009, except from heading 0805, subheadings 2009.11 through 2009.39 or subheading 2002.90.

For further information on what constitutes a substantial transformation or to ensure your goods are eligible for the provision, contact an Import Specialist at the port through which the goods will be imported.