Where must American goods be made or substantially transformed if they are returned without improvement?

American goods that are returned without improvement must be made or substantially transformed in the U.S. or be substantially transformed within the United States. This requirement is crucial for the goods to qualify for certain benefits, such as tariff exemptions or relief from duties upon return to the U.S.

Substantial transformation refers to a process that results in a change in the identity, character, or use of the product, making it significantly different from the original item. If goods are only returned without any alteration or improvement, they retain their original identity, and thus, for them to be exempt from duties or tariffs, they need to comply with these conditions.

The context around this rule is essential as it supports U.S. manufacturing and trade policies, ensuring that domestic production is prioritized, thus fostering economic growth within the country.