CLA-2-71:RR:NC:SP:233 B84370
Mr. Thomas Penksa
PBB Group
434 Delaware Ave.
Buffalo, NY 14202
RE: The tariff classification and status under the North American
Free Trade Agreement (NAFTA), of pearl necklaces and/or
bracelets from Canada; Article 509
Dear Mr. Penska:
In your letter dated April 10, 1997, on behalf of 3077675
Canada Inc. (Delmar), you requested a ruling on the status of pearl
necklaces and/or bracelets from Canada under the NAFTA.
The cultured pearls originate in China and are shipped into
Canada from Hong Kong. They are temporarily strung for the purpose
of transport. The pearls are permanently strung in Canada and made
into wearable necklaces and/or bracelets in Canada with the
addition of clasps or other ornaments.
The applicable tariff provision for the pearl necklaces and
bracelets will be 7116.10.2500, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), which provides for articles of
natural or cultured pearls: cultured. The general rate of duty
will be 7.7% ad valorem.
The merchandise does not qualify for preferential treatment
under the NAFTA because the non originating pearls used in the
production of the goods will not undergo the change in tariff
classification required by General Note 12(t)/71.2, HTSUSA.
You have also requested a ruling on the country of origin
marking requirements for the pearl necklaces and bracelets.
The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides
that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall
be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article
(or its container) will permit, in such a manner as to indicate the ultimate purchaser in the U.S. the
English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part
134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a "good of a NAFTA country" are also
determined in accordance with Annex 311 of the North American Free Trade Agreement
("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate
Customs Regulations. The Marking Rules used for determining whether a good is a good of a
NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of
these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin
entering the U.S. Further work or material added to an article in another country
must effect a substantial transformation in order to render such other country the
"country of origin within this part; however, for a good of a NAFTA country, the
NAFTA Marking Rules will determine the country of origin. (Emphasis added).
Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules
promulgated for purposes of determining whether a good is a good of a NAFTA country. Section
134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country
of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.
Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked
with the name of the country of origin in English, French or Spanish.
In order to determine the country of origin marking requirements we must first apply the
NAFTA Marking Rules in order to determine whether the imported pearl necklace and/or bracelet
"is a good of a NAFTA country".
Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of
determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11
of the regulations, sets forth the required hierarchy for determining country of origin for marking
purposes.
Applying the NAFTA rules of origin set forth in Part 102 of the regulations to the facts of
this case, we find that, for marking purposes, the imported pearl necklace and/or bracelet is not a
good of a NAFTA country. Accordingly, the country of origin of the pearl necklace and/or bracelet
is China and must be so marked.
As a general rule, marking requirements are best met by marking worked into the article at
the time of manufacture. For example, it is suggested that the country of origin on metal articles be
die sunk, molded or etched. However, it does not appear to be feasible to stamp or engrave the name
of the country of origin on the pearl necklaces and/or bracelets. In such instances, the Customs
Service normally permits any reasonable method of marking that will remain on the article during
handling until it reaches the ultimate purchaser. This includes the use of string tags. Section 134.44
of the Customs Regulations explicitly provides that marking by means of string tags is an acceptable
method of indicating country of origin, as long as the tags are affixed in a conspicuous place and so
securely that, unless deliberately removed, they will remain on the article until it reaches the ultimate
purchaser (19 CFR 134.44).
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19
C.F.R. 181).
A copy of the ruling or the control number indicated above should be provided with the entry
documents filed at the time this merchandise is imported. If you have any questions regarding the
ruling, contact National Import Specialist Lawrence Mushinske at 212-466-5739.
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,
Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW,
Franklin Court, Washington, DC 20229.
Sincerely,
Gwenn Klein Kirschner
Chief, Special Products Branch
National Commodity
Specialist Division