CLA-2-95:RR:NC:2:224 I82999
Brian Kavanaugh
Deringer Logistics Consulting Group
1 Lincoln Blvd., Suite 225
Rouses Point NY 12979
RE: The tariff classification of game tables from Canada and
Table-tennis equipment from Taiwan. //Article 509, NAFTA
Dear Mr. Kavanaugh:
In your letter dated June 5, 2002, you requested a tariff classification ruling and a clarification of the eligibility of game tables for preferential treatment under the North American Free Trade Agreement (NAFTA) on behalf of Palason Billiard Inc., Lachine, Quebec.
The merchandise consists of two game tables designed to be installed on the playing surface of a pool table. One article, identified as a Conversion Top, consists of a two part flat playing surface made of vinyl-coated MDF Board with 12 self adhesive rail pads, protective corner pieces, and a net with clamps that converts into a 5’ x 9’ table tennis playing surface.
Aside from enhancing the versatility of the pool table upon which it sits, the Conversion Top appears from all the evidence presented to be used primarily to play Table tennis on. Accordingly, the most applicable subheading for the Conversion Top will be 9506.40.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table tennis) or outdoor games…articles and equipment for table-tennis, and parts and accessories thereof.” The rate of duty will be 5.1 percent ad valorem.
The second article, described as a Switch Top, consists of a flat playing surface made of pressboard that, like the Conversion Top, is designed to be placed on a pool table. It comes in a variety of sizes to fit different size pool tables. One side of the Switch Top is designed to be a table tennis playing surface while a table hockey game can be played on the other side. Accessories with the Switch Top include a net, net supports, hockey handles and pucks.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). The Switch Top board or table consists partly of a table tennis playing surface described under heading 9506, HTSUS, and a table hockey game surface under heading 9504 of the HTSUS. As such, the Switch Top is not specifically provided for in any one heading. For tariff purposes, it is a composite good consisting of two components. As a composite good, we must apply rule 3 of the GRIs, which provides that composite goods are to be classified according to the component that gives the good its essential character or, if there is no essential character, according to the component whose subheading appears last in the tariff. We are of the opinion that neither playing surface imparts any more importance or usefulness to the Switch Top than the other and therefore no essential character is imparted to the article. Accordingly, the Switch Top playing surface is classified in heading 9506, the provision appearing last in the tariff.
The applicable subheading for the multiple use Switch Top play surface will be 9506.40.0000, HTSUS, which provides for “Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table tennis) or outdoor games…articles and equipment for table-tennis, and parts and accessories thereof.” The rate of duty will be 5.1 percent ad valorem.
You also seek advice on the classification treatment of a separately imported set composed of two table tennis paddles with three table tennis balls. The applicable subheading for a set of table tennis paddles and balls will be 9506.40.0000, HTSUS, which provides for “Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table tennis) or outdoor games…articles and equipment for table-tennis, and parts and accessories thereof.”
The rate of duty will be 5.1 percent ad valorem.
Regarding the eligibility of the Switch Top and Conversation Top game tables for preferential treatment under the NAFTA, this merchandise would not qualify for preferential treatment because your information indicates that one or more of the non-originating materials used in the production of these goods will not undergo the change in tariff classification required by General Note 12(t)/95.9 of the HTSUS. We, however, note the possibility under certain circumstances described by you that the cost of the tables’ non-originating material to the producer may represent not more than 7 percent of the transaction value of the goods adjusted to an F.O.B. basis.
Customs regulations provide that when non-originating materials, which do not undergo an applicable change in tariff classification, are used in the production of the good, that fact shall not prevent the good from being considered to originate in the territory of a NAFTA country if the value of such non-originating materials is not more than 7 percent of the transaction value of the good. See, Part II, section 5 of the NAFTA Rules of Origin Regulations contained in the appendix to Part 181, Customs Regulations (19 CFR 181, Appendix, Part II, section 5).
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177) and Part 181 of the Customs Regulations (19 C.F.R. 181).
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 799 Ninth Street, N.W.,
U.S. Mint Annex Building, Washington, D.C. 20229.
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 646-733-3025.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division