CLA-2-46:RR:NC:2:230 L85937
Mr. Oscar H. Vildosola
US Licensed Customs Broker
2105 Sulphur Springs
Douglas, AZ 85607
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of woven bamboo and wood shades from Mexico; Article 509
Dear Mr. Vildosola:
In your letter dated June 17, 2005, you requested a ruling on the status of woven bamboo and wood shades from Mexico under the NAFTA. The request was made on behalf of your client, Levolor Kirsch, a division of Window Newell.
Samples of four styles of finished window shades were submitted. In addition, a box containing the materials and parts necessary to manufacture a shade and a description of the manufacturing process were also submitted.
Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. Where goods cannot be classified solely on the basis of GRI 1, the remaining GRI will be applied in the order of their appearance.
Chapter 46, Note 1 defines the expression “plaiting materials” as follows:
In this chapter the expression "plaiting materials" means
materials in a state or form suitable for plaiting, interlacing
or similar processes; it includes straw, osier or willow,
bamboos, rushes, reeds, strips of wood, strips of other vegetable
material (for example, strips of bark, narrow leaves and raffia
or other strips obtained from broad leaves), unspun natural
textile fibers, monofilament and strip and the like of plastics
and strips of paper, but not strips of leather or composition
leather or of felt or nonwovens, human hair, horsehair, textile
rovings or yarns, or monofilament and strip and the like of
chapter 54.
Sample no. 1 (labeled style # 81708) consists of a woven window shade made of wood rods. Wood rods with a diameter of 3 mm are alternately placed side by side with 1 mm diameter wood rods that are painted black. The wood rods are woven together with yarn. The shade measures approximately 44” wide x 44” long and has an attached 6” long valance made of the same woven wood material. The shade is complete with all the necessary parts attached, including a wood head rail at the top, a wood dowel on the bottom, metal and plastic fittings, a pull cord and mounting hardware. The sample also has an attached fabric lining.
The woven shade (style # 81708) described above and made of thin wood rods in a form suitable for plaiting is classifiable as an article of plaiting materials as provided for in chapter 46, HTSUSA.
Sample no. 2 (labeled style # 81964) consists of a woven window shade made of bamboo strips and wood rods. Bamboo strips, 11 mm wide x 2 mm thick, are alternately placed side by side in a repetitive pattern with one or five wood rods, each 2 mm in diameter. The bamboo strips and wood rods are woven together with yarn. The shade measures approximately 21” wide x 36” long and has an attached 7” long valance. The shade is complete with all the necessary parts attached.
The woven shade (style # 81964) described above and made of bamboo strips and wood rods, both materials in a form suitable for plaiting, is classifiable as an article of plaiting materials provided for in chapter 46, HTSUSA. The essential character of this style shade is imparted by the bamboo strips, which cover the greater area and have the greater visual impact.
Sample no. 3 (labeled style # 81702) consists of a woven window shade made of whole bamboo canes and wood rods. The bamboo canes in the sample vary in diameter from 5 mm to 10 mm. The bamboo canes are placed alternately with two or four wood rods, each about 2 mm in diameter. The bamboo canes and wood rods are woven together with yarn. The shade measures approximately 21” wide x 36” long and has an attached 5” long valance. The shade is complete with all necessary parts attached.
The woven shade (style # 81702) described above and made of whole bamboo canes and wood rods is an article made of both plaiting materials and non-plaiting materials. Plaiting materials of chapter 46, HTSUS, include the thin wood rods described above but do not include the whole bamboo canes. Whole bamboo canes are not considered to be bamboo in a form suitable for plaiting. Articles made of whole bamboo canes are generally classifiable in chapter 44. We find that neither the bamboo canes nor the wood rods making up shade # 81702 give the article its essential character. Classification in this case is governed by General Rule of Interpretation (GRI) 3 (c), which directs that goods for which an essential character cannot be determined shall be classified according to the heading that appears last in the tariff. Based on GRI 3 (c), this shade is classifiable in chapter 46, HTSUSA.
The applicable tariff provision for sample no. 1 (style # 81708) and sample no. 3 (style # 81702) will be 4602.10.3500, HTSUSA, which provides for basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; other, of one or more of the materials bamboo, rattan, willow or wood, wickerwork. The general rate of duty will be free.
The applicable tariff provision for sample no. 2 (style # 81964) will be 4602.10.4500, HTSUSA, which provides for basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; other, of one or more of the materials bamboo, rattan, willow or wood, other. The general rate of duty will be 6.6 percent ad valorem.
Sample no. 4 (labeled style # 81979) consists of a woven window shade made of whole bamboo canes and thin wood rods. The whole bamboo canes vary in diameter from 5 mm to 10 mm. The bamboo canes are placed alternately with two 2 mm diameter wood rods. The bamboo canes and the wood rods have a reddish brown stain and are woven together with yarn. The shade measures approximately 21” wide x 36” long and has an attached 6” long valance. The shade is complete with all necessary parts attached.
The woven shade (style # 81979) described above and made of bamboo canes and wood rods is an article made of both plaiting materials and non-plaiting materials. The thin wood rods are plaiting materials of chapter 46. However, the whole bamboo canes are not in a form suitable for plaiting. Articles made from whole bamboo cane are generally classifiable in chapter 44. We find that the essential character of this style shade is imparted by the bamboo cane because the bamboo cane covers the greater area and has the greater visual impact.
The applicable subheading for sample no. 4 (style # 81979) will be 4421.90.4000, HTSUSA, which provides for other articles of wood, wood blinds, shutters, screen and shades, all the foregoing with or without their hardware, other. The general rate of duty will be 5.1 percent ad valorem.
All four styles of window shades are manufactured in Mexico with components from various countries. The main component consists of the woven bamboo and wood material, which is produced in China and is received in Mexico in the form of rolls. To make a shade, the woven material is cut to length and width from the rolls. Wood received from the United States is machined into a head rail with various notches. Wood dowels and wood slats are cut to length and used as the bottom rail. The wood parts are attached to the cut material by stapling and gluing. Additional woven material is cut from the rolls and attached to the head rail as the valance. In optional cases, a fabric lining is attached to the shade. Metal hardware, plastic fittings and textile cords are attached to the shade. A bag of mounting hardware is stapled to the head rail. Except for screws from Taiwan and a cord lock from Canada, most of the fittings are from the United States.
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, . . .
Based on the facts provided, the goods described above for sample no. 1 (style # 81708), sample no. 2 (style # 81964) and sample no. 3 (style # 81702) qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A). The woven material in roll form for these three styles from China is classifiable in heading 4601, HTSUSA. After processing in Mexico, the manufactured shades made from these materials are classifiable in heading 4602, HTSUSA. The goods will have undergone the required change in classification. Therefore, the woven window shades, style # 81708, # 81964 and # 81702, will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
However, the goods described above for sample no. 4 (style # 81979) will not meet the requirements of HTSUSA General Note 12 (b). The woven material in roll form for this style from China is classifiable within heading 4421, HTSUSA. After processing in Mexico, the shade produced from this material is also classifiable within heading 4421, HTSUSA. The shade will not have undergone the required change in classification. Consequently, the woven window shade, style # 81979, does not qualify for preferential treatment under the NAFTA.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR 181.100(a)(2). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 CFR 181.93. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by the CBP.
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 Paul Garretto at 646-733-3035.
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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division