CLA-2-32:OT:RR:NC:2:236
John M. Peterson
Neville Peterson LLP
17 State Street, 19th Floor
New York, NY 10004
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of “Techmaster 723080” from Canada; Article 509
Dear Mr. Peterson:
In your letter received March 11, 2014, submitted on behalf of your client, Tech-Blend S.E.C., of 707 Boulevard Pierre Tremblay, Iberville, Quebec, Canada, you requested a ruling on the classification and status of “Techmaster 72380” under the NAFTA.
You have described a scenario in which Tech-Blend S.E.C. manufactures black plastic concentrates (BCPs) in Canada with ingredients from the United States (45% polyolefin grind), China (35% carbon black), and Canada (20% calcium carbonate). Each BCP contains polyolefin grind LLDPE as a carrier, carbon black as a pigment, and calcium carbonate as a filler/extender. These ingredients are mixed together in a melt, then extruded and cooled in the form of small black pellets. You state that BCPs are used as raw materials in injection molding a wide range of plastic articles.
The applicable tariff provision for “Techmaster 723080” will be 3206.49.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other coloring matter; preparations as specified in note 3 to this chapter, other than those of 3203, 3204 or 3205; Inorganic products of a kind used as luminophores, whether or not chemically defined: Other coloring matter and other preparations: Other: Preparations based on carbon black. The general rate of duty will be free.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, 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 satisfy 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; or …
Based on the facts provided, “Techmaster 723080” qualifies for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(ii)(A). For entry/duty purposes, the goods will therefore be entitled to preferential treatment under NAFTA upon compliance with all applicable laws, regulations, and agreements.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, or by visiting their website at www.epa.gov.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Nuccio Fera at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division