CLA-2-39:RR:NC:TP:221 818384
Mr. Ruben Sandoval
J.O. Alvarez, Inc.
Tex-Mex Industrial Park
#1 Ramos Road
P.O. Box 1434
Laredo, Texas 78042-1434
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of "Polifan" film from Mexico; Article 509
Dear Mr. Sandoval:
In your letter dated January 3, 1996, on behalf of Masterpak, Mexico, you requested a ruling on the classification and status under the NAFTA of Polifan film from Mexico.
A sample of the Polifan film was submitted. The product is said to be composed of a layer of cellophane film laminated to a layer of polyethylene film. The breakdown included in your letter indicates that cellophane predominates by weight over the polyethylene. The sample is printed with product information, and will be used to package products. The film will also be imported without any printing.
The applicable tariff provision for the Polifan film, whether printed or not, will be 3920.71.0000, Harmonized Tariff Schedule of the United States (HTSUSA), which provides for other plates, sheets, film, foil and strip, of plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials, of regenerated cellulose. The general rate of duty will be 6.2 percent ad valorem.
You have stated that the materials are manufactured in either the United States or Mexico. However, you have not indicated whether all of the components used in the manufacture
of these materials, such as the resin and ink, are originating. If all of the components originate in the United States, Canada or Mexico, then the Polifan film, being made entirely in the territory of Mexico, using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b) (iii). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
If any of the components originate in countries other than the United States, Canada and Mexico, then the Polifan film may still be eligible for reduced duty under NAFTA since each of the non-originating materials used to make the film has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/39.1. In this case, the Polifan film will also be subject to a Regional Value Content (RVC) requirement of 60 percent under the Transaction Value Method or 50 percent under the Net Cost Method as required under the rule applicable to the Polifan film. Assuming the goods are eligible for preferential treatment under the NAFTA, the merchandise will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
If any of the components used to make the Polifan film are from a non-originating country and you desire a ruling regarding the Regional Value Content of your goods and their eligibility for NAFTA preferential treatment, please send the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)) to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229, along with a copy of this letter. This information should include a breakdown showing the country of origin and cost for each material, as well as the country of processing and cost for each of the manufacturing steps.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling or the control number indicated above should be attached to the entry documents filed at the time this merchandise is imported. If you have any questions regarding this ruling, contact National Import Specialist Joan Mazzola at 212-466-5580.
Sincerely,
Roger J.Silvestri
Director
National Commodity
Specialist Division