CLA-2-85:OT:RR:NC:N1:112
Ms. Julie Toms
Import Control Specialist
Polycom, Inc.
4750 Willow Road
Pleasanton, CA 94588
RE: The tariff classification of a video conferencing accessory kit from Mexico
Dear Ms. Toms:
In your letter dated November 02, 2009, you requested a tariff classification ruling and a country of origin marking determination.
The merchandise concerned is an accessory kit (part # 2215-24649-001), for a video conferencing system. The kit contains a cable kit (part # 2215-24651-001), an infrared remote control (part # 2001-52556-001), a power cord (part # 2215-10445-001) and a set of 4 plastic stick on feet (part # 2215-26133-001).
The cable kit (part # 2215-24651-001) consists of three insulated electric cable assemblies. The first cable assembly is a 4 conductor telecommunications cable, which incorporates RJ-11 connectors on both ends (part # 2457-20071-001). This cable is used to connect the video conference system to a standard telephone jack. The second cable assembly is an 8 conductor LAN cable, which incorporates RJ-45 connectors on both ends (part # 2457-23537-001.) This cable is used to connect the video conferencing system to a LAN system. The third cable assembly is a type of audio/video cable (part # 2457-24772-001). One end of this cable incorporates a DVI connector and 2 RCA connectors; the opposite end incorporates 5 RCA connectors. This particular cable assembly is constructed from 5 coaxial cables. It is used to connect the video conferencing system to a video monitor. The submission states that each of the three cable assemblies are produced in Thailand.
The infrared remote control (part # 2201-52556-001), is used to control the functions of the video conferencing system. The submission states that this remote control is produced in China.
The electrical power cord (part # 2215-10445-001), is used to provide electrical power to the video conferencing system. The submission states that the power cord is manufactured in China or Thailand.
The 4 stick on plastic feet (part # 2215-26133-001), are used to provide a soft, no scratch base for the video conferencing system. The submission states that the plastic feet are manufactured in China.
The accessory kit (part # 2215-24649-001), does not meet the criteria for treatment as a set under GRI 3. While the articles in the kit "consist of at least two different articles which are, prima facie, classifiable in different headings", it is our opinion that the contents of the kit do not "consist of products or articles put up together to meet a particular need or carry out a specific activity." The components of the kit are not intended to be used together, but rather are designed to meet the needs of separate and distinct tasks. Therefore, each of the components must be classified separately.
The applicable subheading for the 4 conductor telecommunications cable, (part # 2457-20071-001) will be 8544.42.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insulated wire, cable…: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Fitted with modular telephone connectors.” The general rate of duty will be Free.
The applicable subheading for the 8 conductor LAN cable, (part # 2457-23537-001) will be 8544.42.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insulated wire, cable…: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Of a kind used for telecommunications.” The general rate of duty will be Free.
The applicable subheading for the audio/video coaxial cable (part # 2457-24772-001) will be 8544.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insulated wire, cable…: Coaxial cable and other coaxial conductors.” The general rate of duty will be 5.3%.
The applicable subheading for the infrared remote control (part # 2201-52556-001), will be 8543.70.9650, Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus…: Other machines and apparatus: Other: Other: Other: Other.” The general rate of duty will be 2.6%
The applicable subheading for the electrical power cord (part # 2215-10445-001), will be 8544.42.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insulated wire, cable…: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Other.” The general rate of duty will be 2.6%
The applicable subheading for the 4 stick on plastic feet (part # 2215-26133-001), will be 3926.90.9980, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other.” The general rate of duty is 5.3%.
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 are also requesting the country of origin and marking requirements for this accessory kit. You state that the country of origin of the telecommunications cable (part # 2215-24651-001), the LAN cable (part # 2457-23537-001) and the audio/video cable (part # 2457-24772-001) is Thailand; the country of origin of the remote control (part # 2201-52556-001), and the plastic feet (part # 2215-26133-001), is China; the country of origin of the power cable (part # 2215-10445-001) will be either China or Thailand. These components are imported into Mexico where they are packaged into a common box which is then sold as an accessory kit to a video conferencing system.
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, 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 good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the regulations, defines “country of origin” as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).
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.
You state that the imported accessory kit is processed in a NAFTA country “Mexico” prior to being imported into the U.S. Since “Mexico” is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported accessory kit is a “good of a NAFTA country”, and thus subject to the NAFTA marking requirements.
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.
The goods in question are imported into Mexico from their respective countries of origin. Within Mexico the goods are repackaged into a common box to create the accessory kit. As stated above it is our opinion that the repackage goods do not satisfy the requirements to be classified as a set under GRI 3. Each component has to be classified and marked separately. The mere packaging of these components into the same box does not change the country of origin of the separate components. None of the goods undergo a tariff shift which would change their country of origin to Mexico.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported components of the accessory kit are not goods of Mexico for marking purposes. Therefore the country of origin for each component of this accessory kit will be the same as it was prior to being packaged into the common outer box.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181), and Part 177 of the Customs Regulations (19 C.F.R. 177).
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, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., 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 Steven Pollichino at (646) 733-3008.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division