CLA-2 CO:R:C:M 956402 KCC
Andrea Abraham
The Forschner Group, Inc.
One Research Drive
P.O. Box 874
Shelton, CT 064484-0874
RE: Pocket Knife; NAFTA; Article 509; rules of origin; General
Note 12(b)(ii); General Note 12(t) 82; change in tariff
classification; non-originating material; EN 82.11;
3926.90.25; other articles of plastic
Dear Ms. Abraham:
This is in response to your letter dated May 10, 1994,
concerning the applicability of the North American Free Trade
Agreement (NAFTA) and the country of origin to pocket knives when
exported to Canada. Samples of an unassembled and completed pocket
knife were submitted for our examination.
FACTS:
Pocket knife bodies, plastic handles, toothpicks, tweezers
and pens are imported from Switzerland. In the U.S., a logo is
imprinted onto the plastic handle using one of several methods,
such as Duratech imprinting, silkscreening, and engraving. After
the imprinting process is completed, the handles are attached to
the knife body. The toothpick, tweezers, and/or pen are then
inserted into the slot between the handle and knife body. The
completed knife is packaged in a gift box for the consumer and
shipped to Canada.
You state that the Harmonized Tariff Schedule (HTS) numbers
for the parts imported into the U.S. are as follows:
pocket knife body 8211.93.00
plastic handles 8211.93.00
plastic toothpick 3924.90.55
metal tweezers 8203.20.20
pen 9608.10.00.
ISSUE:
Is the pocket knife eligible for preferential tariff treatment
under the NAFTA?
LAW AND ANALYSIS:
To be eligible for tariff preferences under the North American
Free Trade Agreement (NAFTA), goods must be "originating goods"
within the rules of origin in General Note 12(b), HTSUS. Because
the completed knifes are made from parts imported from a non-NAFTA
country, to be "goods originating in the territory of a NAFTA
party" the goods must be "transformed in the territory of Canada,
Mexico and/or the United States" pursuant to General Note
12(b)(ii)(A), HTSUS, which states:
except as provided in subdivision (f) of this note, each of
the non-originating materials used in the production of such
goods undergoes a change in tariff classification described
in subdivision (r), (s) and (t) of this note or the rules set
forth therein....
In this case, we must examine whether the pocket knife is
"transformed in the territory of Canada, Mexico and/or the United
States" pursuant to General Note 12(b)(ii)(A), HTSUS.
We are of the opinion that the completed pocket knife is
classified under subheading 8211.93, HTS, which provides for:
Knives with cutting blades, serrated or not (including pruning
knives), other than knives of heading 8208, and blades and
other base metal parts thereof...Other...Knives having other
than fixed blades, and parts thereof (except blades)....
In understanding the language of the HTS, the Harmonized
Commodity Description and Coding System (HCDCS) Explanatory Notes
(ENs) may be consulted. The ENs, although not dispositive, provide
a commentary on the scope of each heading of the HTSUS and are
generally indicative of the proper interpretation of these
headings. See, T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23,
1989). EN 82.11 (pgs. 1112-1113), states that this heading covers
folding knives of all kinds, such as "[p]ocket knives, pen knives,
jack knives, campers' knives...."
As the completed pocket knife is classified under subheading
8211.93, HTS, a transformation is evident when a change in tariff
classification occurs that is authorized by General Note 12(t) 82,
HTSUS. General Note 12(t) 82, HTSUS, states:
A change to headings 8201 through 8215 from any other chapter.
Therefore, any non-originating materials must come from a chapter
other than chapter 82.
In this case, the classification of the non-originating
materials from Switzerland is as follows:
pocket knife body 8211.93.00
plastic handles 3926.90.25
plastic toothpick 3924.90.55
metal tweezers 8203.20.20
pen 9608.10.00.
We note that the plastic handles can not be classified as parts of
pocket knives under subheading 8211.93.00, HTSUS (Harmonized Tariff
Schedule of the United States), because heading 8211, HTSUS, only
provides for "other base metal parts." Since the handles are
plastic, they cannot be classified under heading 8211, HTSUS. They
are classified under subheading 3926.90.25, HTSUS, which provides
for "Other articles of plastics and articles of other materials of
headings 3901 to 3914... Other...Handles and knobs, not elsewhere
specified or included, of plastics."
A change in tariff classification does not occur for the
pocket knife body and metal tweezers because they are both
classified in Chapter 82. Therefore, the completed pocket knife
is not eligible for preferential tariff treatment under the NAFTA
pursuant to General Note 12(b)(ii)(A), HTSUS.
Additionally, we note that you requested a determination of
the completed pocket knife's country of origin. Each country has
its own rules and regulations to administer when determining the
proper country of origin and marking for goods entering their
territory. Since you will be exporting the completed pocket knives
to Canada, we recommend that you seek a ruling from the Canadian
government as to the proper country of origin of your product.
Since you will be importing the completed pocket knives into
Toronto, you may address your letter to Chief Rulings and Appeals,
Toronto Region, P.O. Box 10, Station A, 1 Front Street West,
Toronto, Ontario, M5W 1A3, Canada.
HOLDING:
The pocket knife is classified under subheading 8211.93.00,
HTSUS. It is not eligible for the NAFTA tariff preference.
Sincerely,
John Durant, Director