CLA-2-81:OT:RR:E:NC:N1:117
Mr. Scott Hoffman
Trans American CHB
2775 Broadway
Buffalo, NY 14227
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of titanium tubes from Canada; Article 509
Dear Mr. Hoffman:
In your letter dated June 30, 2008 on behalf of Associated Tube Industries, you requested a ruling on the status of titanium tubes from Canada under the NAFTA.
Titanium strip of either Japanese or Italian origin will be imported into Canada. In Canada it will be manufactured into tubing by roll forming, welding, annealing, straightening and cutting. It will be eddy current tested, pressure tested, ultrasonic tested and packaged prior to importation into the United States.
The applicable tariff provision for the titanium tubes will be 8108.90.6060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for titanium and articles thereof, including waste and scrap, other, other, tubes and pipes. The general rate of duty will be 15 percent.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
You requested that we determine the status of these tubes under the North American Free Trade Agreement (NAFTA). 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, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. Based on the facts provided, the titanium pipe does not undergo the requisite tariff shift required by HTSUS General Note 12(t), Chapter 81(1), “A change to subheadings 8101.10 through 8110.90 from any other subheading, including another subheading within that group”.
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 Gloria Stingone at 646-733-3020.
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