CLA-2-48:S:N:N8:234 806292
Mr. John M. McKeown
P.O. Box 909
Laredo, Texas 78042-0909
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of "Mead Five Star
First Gear Ensemble Binder" from Mexico; Article 509.
Dear Mr. McKeown:
In your letter dated January 23, 1995, to the Office of
Regulations and Rulings at Washington, D.C., on behalf of your
client, Mead School and Office Products Corporation, you requested
a ruling on the status of an article designated "Mead Five Star
First Gear Ensemble Binder" from Mexico under the NAFTA.
The article is a three ring looseleaf book which binds printed
paper sections, the first of which is entitled "Monthly Planner",
consisting of 12 sheets in a monthly calendar format, 11 x 8 1/2
inches. This section is also spiral bound between paperboard
covers, so that should it be removed from the looseleaf binding it
would retain its identity as a bound book/planner.
A second section is a cellophone-wrapped set of white paper,
of 100 sheets, with blue lines and a red left-hand margin line.
These pages are not bound except by the looseleaf mechanism.
There is a third section which consists of amber-colored
divider sheets of paperboard, each with a plastic slot affixed to
the outside edge to accomodate paper inserts, which will be used to
identify the section of the book that will be placed in front of or
behind the divider card. A strip of such blank paper inserts
accompanies the divider cards; the strip is bound by one of the
three rings of the book.
The book does not have a permanent front cover; it has a
permanent back cover of heavy durable paperboard. The book is
mounted into a sewn nylon case by slipping the back permanent cover
into a slot at the right side of the nylon case. The case also has
a smaller slot at the left side, which can accomodate a slip-in
stationery article of not more than 4 inches in width. The sample
is presented for consideration with this smaller slot not occupied.
The sewn nylon case has a velcro (tm) closure strip, but is
not itself closed otherwise. It functions as the outer cover of the
article.
You advise that the nylon case (which you refer to as "cover")
and the ring binder are products of China, and the spiral bound
monthly planner and other paper products are of U.S.A. origin. The
processing in Mexico consists, therefore, essentially of placing
the U.S. origin paper goods onto the Chinese ring binder (through
holes which are presumed to have been punched in the U.S.), and
slipping the Chinese ring binder's back permanent cover into a slot
at the right side of the Chinese nylon case or cover.
The applicable tariff provision for the Mead Five Star First
Gear Ensemble Binder will be, as you propose, 4820.10.2010,
Harmonized Tariff Schedule of the United States Annotated (HTSUSA),
which provides for: Diaries and address books, bound, of paper or
paperboard. The general rate of duty will be 3.6 percent.
The merchandise does not qualify for preferential treatment
under the NAFTA because one or more of the non-originating
materials used in the production of the goods will not undergo the
change in tariff classification required by General Note
12(t)/Chapter 48, HTSUSA.
In this connection, please note Section 102.17 (c), Customs
Regulations, (19 C.F.R. 102.17 (c)), which reads in pertinent
part:"A foreign material shall not be considered to have undergone
the applicable change in tariff classification set out in Section
102.20, or satisfy the other applicable requirements of that
Section by reason of simple packing, repacking or retail packaging
without more than minor processing".
In our view, the placing of U.S. origin paper articles onto
Chinese looseleaf rings is not "more than minor processing" of
those rings. Similarly, the slipping of the Chinese looseleaf
mechanism into a slot in the Chinese nylon cover is not "more than
minor processing" of either the mechanism or the cover.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Should you wish to request an administrative review of this
ruling, submit a copy of this ruling and all relevant facts and
arguments within 30 days of the date of this letter, to the
Director, Office of Regulations and Rulings, U.S. Customs Service,
1301 Constitution Ave., N.W., Franklin Court, Washington, D.C.
20229.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport