CLA-2-49:RR:NC:2:234
Mr. Larry Stone
Art in Motion Limited Partnership
2000 Hartley Avenue
Coquitlam, British Columbia
Canada V3K 6W5
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a framed lithographic print mounted on a screen printed mirror and a decorative glass article; Article 509
Dear Mr. Stone:
In your letter dated July 6, 2007, you requested a ruling on tariff classification, NAFTA eligibility and country of origin marking concerning a Canadian lithographic print mounted on a screen printed mirror and a glass decorative article which consists of a mirror from China that has been screen printed in Canada.
Samples of both products were submitted with your ruling request for our review.
The first product is a lithographic print mounted on a screen printed mirror. It consists of:
A decorative 15” x 19” mirror imported from China
An 11” x 13” lithograph image printed in Canada
Screen printing applied to mirror in Canada
11” x 13” MDF board manufactured in Canada
Inner frame constructed of polystyrene molding from China
Outer frame constructed of polystyrene molding from China
One cardboard backing pad manufactured in Canada
One dust paper backing manufactured in Canada
Two metal picture hangers made in China
You state that the lithographic image print and the screen printing application to the mirror are produced in Canada. The screen printing covers the entire surface of the mirror with decorative designs. The 11” x 13” lithograph is glued to the MDF board, framed with thin strips of polystyrene molding and permanently glued to the center of the 15” x 19” decorative mirror. An outer frame of three inch wide polystyrene molding is constructed of four pieces, cut to length, and vee-nailed together at the corners. The mounted lithograph on the screen printed mirror is inserted into the outer frame with a cardboard pad spacer between them. The frame is stapled together holding the components in place with a paper backing glued to the frame. Metal picture hangers are fastened to the frame for hanging. The assembly of the product is completed in Canada.
The applicable subheading for the framed screen printed lithograph mounted on a screen printed mirror will be 4911.91.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for printed pictures, designs and photographs…: lithographs on paper or paperboard: over 0.51 mm in thickness. The rate of duty will be free.
The second product is a decorative glass article. In your letter you indicated that a framed glass mirror measuring fifteen inches by nineteen inches from China is screen printed in Canada. The screen printing covers the mirror glass with decorative designs.
The information provided in your letter indicates that the value of the product is over five dollars.
The applicable subheading for the decorative glass article - consisting of framed screen-printed mirror glass that is covered with decorative designs - will be 7013.99.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes…: other glassware: other: other: other: valued over three dollars each: other: valued over five dollars each. The rate of duty will be 7.2 percent ad valorem.
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 the World Wide Web at http://www.usitc.gov/tata/hts/.
In order to determine whether a product is eligible for NAFTA preferential treatment, 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 first product, the printed lithograph mounted on a screen printed mirror, described above, qualifies for NAFTA preferential treatment, because it meets the requirements of HTSUS General Note 12(b)(ii)(A). The non-originating Chinese components undergo the required change in tariff classification described in subdivision (t) of this note. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
The second product, the decorative article consisting of a screen-printed mirror glass, will not qualify for NAFTA preferential treatment because it does not meet the requirements of HTSUS General Note 12(b) and 12(t). The goods will be fully dutiable and will not be entitled to a free or reduced rate of duty under the NAFTA.
The Chinese mirror - classifiable as a mirror in heading 7009 - is converted into a decorative glass article classifiable in heading 7013 in Canada. General Note 12(t), 70.3 states that a tariff shift would be allowable for purposes of NAFTA eligibility when the shift constitutes a change to headings 7010 through 7020 from any other heading, except from headings 7007 through 7020. Thus, a tariff shift is not allowable from heading 7009 to heading 7013. Therefore, the decorative glass article - consisting of a Chinese mirror that is screen-printed in Canada - does not qualify for preferential treatment under the NAFTA, because the non-originating ingredient does not undergo the change in tariff classification described in General Note 12(t), 70.3. The change which it does undergo - from heading 7009 to heading 7013 - is not an allowable tariff shift under General Note 12(t), 70.3, HTSUS.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134 of the Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a product is a good of a NAFTA country are contained in Part 102 of the Customs Regulations. The marking requirements for these goods are set forth in Part 134 of the Customs Regulations.
Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish. Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported lithographic print mounted on a screen printed mirror is a good of Canada for marking purposes. For purposes of country of origin marking requirements, Part 102.20 (j) of the Customs Regulations allows a tariff shift which constitutes “a change to heading 4901 through 4911 from any other heading, including another heading within that group.” Therefore, the lithograph mounted on a screen printed mirror may be marked with the country of origin, Canada.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported decorative glass article is a good of Canada for marking purposes. For purposes of country of origin marking requirements, Part 102.20 (l) of the Customs Regulations allows a tariff shift which constitutes “a change to heading 7012 through 7018 from any other heading including another heading within that group.” Thus, for purposes of country of origin marking under NAFTA, a change from heading 7009 to heading 7013 would constitute an allowable tariff shift. Therefore, a Chinese mirror classifiable in heading 7009 converted in Canada to a decorative glass article classifiable in heading 7013 may be marked with the country of origin Canada.
However, as indicated above, despite the fact that this decorative article consisting of screen-printed mirror glass may be marked “Canada” under the Marking Rules set forth in Part 102 of the Customs Regulations, it is not eligible for NAFTA preferential treatment under General Note 12 of the HTSUS.
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 Patricia Wilson at 646-733-3037.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division