CLA-2:RR:NC:2:224 G80871
Jack Alsup
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio TX 78841
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of fishing line from Germany and Mexico; Article 509
Dear Mr. Alsup:
In your letter dated August 4, 2000, you requested a ruling on the status of fishing line from Germany and Mexico under the NAFTA, on behalf of Plastic Lures, Inc.
Your letter indicates that synthetic monofilament line made from nylon and other polyamides with various line diameters ranging from .1mm to .5mm is produced in Germany and imported into Mexico in bulk spools ranging in length from 32000 meters to about 87000 meters of line per spool. In Mexico, the bulk rolls of monofilament are respooled on to smaller retail consumer spools holding anywhere from 324 meters of line to 450 meters of line. These consumer spools are then packaged for retail sale and imported to the United States. In their condition as imported, the monofilament line spools are made up into fishing lines and put up and packaged for sale at retail as recreational fishing line.
The applicable tariff provision for the monofilament line will be 9507.90.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fishing rods, fish hooks and other line fishing tackle***other: fishing line put up and packaged for retail sale. The general rate of duty will be 3.7 percent ad valorem.
To be eligible for tariff preferences under the NAFTA, goods must be an “originating good” within the rules of origin in General Note 12(b), HTSUS. General Notes 12(b)(i) and (ii) A, HTSUS, state:
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—
they are goods wholly obtained or produced entirely in the territory
of Canada, Mexico and/or the United States; or
they have been transformed in the territory of Canada, Mexico and/or
the United States so that—
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 (s) and (t)
of this note or the rules set forth therein***
Thus, General Note 12(b)(ii)(A) specifies in part that merchandise will qualify as originating goods if the non-originating materials undergo a change in tariff classification described in subdivision (t). General Note 12(t), Chapter 95, Rule 10, states that “a change to headings 9507 through 9508 from any other chapter” will undergo a qualifying change in tariff classification. The rule is applicable to the subject merchandise as the finished line is classified within heading 9507, HTSUS. Therefore, the rule indicates that if the components exported from Germany are not classifiable within headings 9507 or 9508 but are classifiable in another chapter of the HTSUS, the finished fishing line will qualify for NAFTA preferential treatment.
The subject monofilament line produced in Germany is exported to Mexico in bulk spools or rolls as noted above. Legal Note 1 to Chapter 95, HTSUS, states that “this chapter does not cover (c) yarns, monofilament, cords or gut or the like for fishing, cut to length but not made up into fishing lines***of Section XI.” The monofilament line exported in bulk is not made up into fishing line as we define the term “made up” and would be classifiable in Section XI of the HTSUS, specifically in chapter 54 of the HTSUS.
Consequently, pursuant to General Note 12(t), Chapter 95, Rule 10, the subject monofilament fishing line, because it undergoes a change in tariff classification, is eligible for NAFTA preferential treatment and will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
Your question regarding the acceptability of various retail package markings will be answered in a separate communication from this office.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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 Tom McKenna at 212-637-7015.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division