1. (a) The commissioner will only classify a product that is verified by the applicant, under the penalties for unsworn falsification, on the form required by 3 AAC 92.020(a)(1), to be an "Alaska product" as defined in AS 36.30.338(1).

2. (b) The commissioner will classify an Alaska product as a Class III product if

   1. (1) it is produced or manufactured, as defined in AS 36.30.338(2), in Alaska;
   2. (2) responsibility for the final outcome of the production or manufacturing process is controlled by an Alaskan producer or manufacturer; and

   3. (3) either

      1. (A) no manufacturing step is performed outside Alaska; or
      2. (B) a manufacturing step or section, the absence of which would not alter the distinctiveness of the character of the product, is sub-contracted out of state.

3. (c) The commissioner will classify an Alaska product as a Class II product if

   1. (1) it is primarily produced or manufactured, as defined in AS 36.30.338(2), in Alaska; and
   2. (2) responsibility for the final outcome of the production or manufacturing process is controlled by an Alaskan producer or manufacturer but a significant step or section is sub-contracted out of state.

4. (d) The commissioner will classify an Alaskan product as a Class I product if

   1. (1) it is produced or manufactured, as defined in AS 36.30.338(2), in Alaska;
   2. (2) responsibility for the final outcome of the production or manufacturing process is controlled by an Alaskan producer or manufacturer; and

   3. (3) the product either

      1. (A) involves the custom assembly in Alaska of prefabricated parts that are primarily manufactured outside Alaska such that the finished product is still defined by the same generic name as the prefabricated parts; or
      2. (B) a majority of the total steps of the manufacturing process are subcontracted outside Alaska, but a significant portion of the steps, or the final assembly or finishing, which determine the distinct character of the product are performed in Alaska.

(Eff. 1/3/88, Register 104)

Authority: AS 36.30.332