CLA-2-48:S:N:N8:234 806293
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 Student Day Planner" 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 Student Day Planner" from Mexico under the NAFTA.
The article is a six-ring looseleaf book, designed to hold
pages which measure 7 1/2 x 5 7/8 inches. As presented, a sample
article, which will be retained for reference, holds or contains
pages comprising four sections: Calendar, Assignments, Notes and
Telephone/Addressess, and also a six-inch/15 cm transparent plastic
ruler.
The book is slipped into a pocket at the right side of the
nylon cover. A pad of paper, printed with graph lines, which is
hole-punched to fit onto the 6-ring binder mechanism if desired, is
slipped into another slot at the right side of the cover.
The left inner side of the cover also has two slots, one of
them closed with a slide-fastener (zipper), the other not closed.
In the sample presented these two slots are unoccupied. The cover
has a velcro (tm) closure, which is a textile strip 1 1/4" wide.
The paper contents of the folder are visible along the edges of the
cover when it is in a closed position.
You advise that the nylon cover and the ring binder are from
China, the small plastic ruler is from Taiwan, and the paper
products are U.S. 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 presmued 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 cover. The Taiwan plastic ruler may then be placed onto the
Chinese ring binder, and the U.S. graph pad may be slipped into a
slot in the Chinese nylon cover.
The applicable tariff provision for the "Mead Five Star First
Gear Student Day Planner" will be, as you suggest, 4820.10.2010,
Harmonized Tariff Schedule of the United States Annotated (HTSUSA),
which provides for: Diaries and address books, 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 Sec.
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. 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. Finally, the
slipping of the Taiwan ruler onto the Chinese looseleaf mechanism
is not "more than minor processing" of the ruler or the mechanism.
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