CLA-2 R:C:T 957845 ch
Rahul Singh
Gadjraj & Sons Import & Export
6600 N.W. 82 Avenue
Miami, Florida 33166
RE: Tariff classification and North American Free Trade
Agreement eligibility for a pullman suitcase.
Dear Mr. Singh:
This is in response to your letter, dated February 9, 1995,
requesting a ruling on the tariff classification and the
applicability of North American Free Trade Agreement (NAFTA)
preferential treatment for a pullman suitcase. Your request was
forwarded to this office for a response. No sample was
submitted.
FACTS:
The following materials and components will be exported from
China to Mexico:
Item Composition
Zipper Iron Wire
Locks and Keys Iron
Piping Iron
Wheel Plates Iron
Wheels Iron and Rubber
Rivets Iron
Handles Rubber
Washers Iron
Metal Frame Iron
Item (Continued) Composition
Clip-on Plastic
Zipper Pullers Iron
Corner Board Wood Pulp
Name Tags PVC/Plastic
Wood Board Plywood
Thread 60 percent Cotton/40 percent
Polyester
Material 60 percent Jute/40 percent
Polyester
Poly Strip 60 percent Cotton/40 percent
Polyester
In Mexico, the jute fabric will be cut to specific size and the
components will be assembled by means of sewing and riveting
operations. The finished suitcases will be inspected and packed
prior to exportation to the United States. The packing cartons
will be manufactured in the United States.
ISSUES:
What is the proper tariff classification for the suitcase?
Does the suitcase qualify for NAFTA preferential treatment?
LAW AND ANALYSIS:
Classification
The pullman suitcase is classifiable in subheading
4202.12.6000, HTSUS, which provides in part for suitcases, with
outer surface of vegetable fibers and not of pile or tufted
construction (other than cotton).
NAFTA Preference Eligibiity
General Note 12(b), HTSUS, provides in pertinent part that:
For the purposes of this note, goods imported into the
customs territory of the United States are eligible for the
tariff treatment and quantitative limitations set forth in
the tariff schedule as "goods originating in the territory
of a NAFTA party" only if --
(i) they are goods wholly obtained or produced entirely in
the territory of Canada, Mexico and/or the United
States; or
(ii) they have been transformed in the territory of Canada,
Mexico and/or the United States so that --
(A) 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 subdivisions
(r), (s) and (t) of this note or the rules set
forth therein, or
(B) the goods otherwise satisfy the applicable
requirements of subdivisions (r), (s) and (t)
where no change in tariff classification is
required, and the goods satisy all other
requirements of this note; or
(iii) they are goods produced entirely in the territory
of Canada, Mexico and/or the United States
exclusively from originating materials.
In this instance, by virtue of General Note 12(b)(ii)(A),
the pullman suitcase is an originating good for NAFTA purposes.
General Note 12(b)(ii)(A) specifies in pertinent part that goods
which undergo a change in tariff classification described in
subdivision (t) qualify as originating goods. General Note
12(t), Chapter 42, Rule 3, provides:
A change to subheading 4202.12 from any other chapter,
except from headings 5407, 5408 or 5512 through 5516 or
tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25,
5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15,
5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25,
5907.00.05, 5907.00.15 or 5907.00.60.
Thus, if the materials and parts exported from China are
separately classifiable in chapters other than Chapter 42, HTSUS,
and are not one of the enumerated exceptions to the rule, the
finished pullman suitcase will qualify for NAFTA preferential
treatment.
The suitcase is comprised of parts composed of iron,
plastic, rubber and wood. Articles composed of these materials
are generally classified in Chapters 73, 39, 40 and 44, HTSUS,
respectively. Woven fabric weighing predominently of jute
materials is classifiable in Chapter 53, subheading 5310.90.0000,
HTSUS. The cotton thread is classified in Chapter 52, HTSUS.
Moreover, the reference to poly strip predominently of cotton
would appear to meet the description of a narrow fabric,
classifiable in Chapter 58, heading 5806, HTSUS. Therefore, the
parts and materials exported from China are not classifiable in
Chapter 42, HTSUS, at the time of importation into Mexico.
Furthermore, the parts and materials are not specifically
excepted from General Note 12(t), Chapter 42, Rule 3.
Consequently, the finished suitcase qualifies for NAFTA
preferential treatment.
HOLDING:
The subject merchandise is classifiable under subheading
4202.12.6000, HTSUS, which provides for trunks, suitcases, vanity
cases, attache cases, briefcases, school satchels and similar
containers: with outer surface of textile materials: of
vegetable fibers and not of pile or tufted construction: other.
The textile category is 870.
The merchandise is eligible for preferential treatment under
the NAFTA. At this time, the applicable rate of duty for such
goods from Mexico is 5.2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division