CLA-2 R:C:M 958053 JAS
Mr. Ray Reynolds
Lee Hardeman Customs Broker, Inc.
P.O. Box 45545
Atlanta, GA 30320-0545
RE: Vehicles of Canadian Origin Imported Into the Customs
Territory From Australia and Mexico; Canadian Article,
Originating Good; Automotive Products Trade Act (APTA);
General Notes 5 and 12, HTSUS; Transshipment; NAFTA Rules
of Origin Regulations; Section 16 of the Appendix to Part
181 of Title 19 CFR
Dear Mr. Reynolds:
In your letter of May 31, 1995, on behalf of Trax, Inc., you
inquire as to the tariff status under the Automotive Products
Trade Act of 1965 (APTA), as amended, of certain articles of
Canadian origin that are sought to be imported into the Customs
territory of the United States after having previously been
exported from Canada to Australia or Mexico.
FACTS:
Dumpers designed for off-highway use, of the kind provided
for in subheading 8704.10, Harmonized Tariff Schedule of the
United States (HTSUS), are manufactured in Canada. Some of the
dumpers will be entered directly into the customs territory of
the United States. Others will be exported and enter the customs
territories of Australia or Mexico where they will be released
from customs control and remain in use for an indeterminate
period. These dumpers will then be entered into the customs
territory of the United States under the APTA. You state that
upon importation these vehicles will be in a used condition and
that the proper APTA certification and documentation of Canadian
origin will be available.
ISSUE:
Whether dumpers otherwise qualifying as originating goods
lose that status by virtue of their use in Australia or Mexico.
- 2 -
LAW AND ANALYSIS:
General Note 5(a), HTSUS, Automotive Products and Motor
Vehicles Eligible for Special Tariff Treatment, provides that
motor vehicles and original motor-vehicle equipment which are
Canadian articles and which fall in provisions for which the rate
of duty "Free (B)" appears in the "Special" subcolumn may be
entered free of duty under the Automotive Products Trade Act. In
accordance with Note 5(a)(i) the term "Canadian article" means an
article which originates in Canada, as defined in General Note
12.
Paragraph (b) of General Note 12, HTSUS, North American Free
Trade Agreement, establishes the criteria under which goods
imported into the customs territory of the United States qualify
as originating goods for NAFTA purposes. We will assume for the
purposes of this ruling that the dumpers in issue qualify as
originating goods under General Note 12.
General Note 12(l), HTSUS, Transshipment, states that a good
shall not be considered to be an originating good by reason of
having undergone production that satisfies the requirements of
this note if, subsequent to that production, the good undergoes
further production or any other operation outside the territories
of the NAFTA parties, other than unloading, reloading or any
other operation necessary to preserve it in good condition or to
transport the good to the territory of Canada, Mexico and/or the
United States. Rule 12(l) is interpreted by the NAFTA Rules of
Origin Regulations which appear in the Appendix to Part 181 of
Title 19, Code of Federal Regulations (19 CFR 181). Paragraph
(1)(a) of PART VI, SECTION 16. TRANSSHIPMENT, states in relevant
part that a good otherwise qualifying as an originating good
loses that status if the good is withdrawn from customs control
outside the territories of the NAFTA countries.
HOLDING:
Dumpers qualifying as originating goods under General Note
12, HTSUS, that are imported into the customs territory of the
United States from Canada or Mexico, are within the term
"Canadian article" for purposes of General Note 5, HTSUS. They
are eligible for entry free of duty under the APTA if all
applicable requirements are satisfied. Dumpers that are imported
into the customs territory of the United States after having been - 3 -
withdrawn from customs control in Australia are not originating
goods under General Note 12, and are not within the term
"Canadian article" for purposes of General Note 5, HTSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division