CLA-2-42:OT:RR:NC:N4:441
Mr. Kevin Parkinson
Ideo Plastics, Inc.
Suite 202, 45793 Luckakuck Way
Chilliwack, B.C. V2R 5S3
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of an iPhone case from Canada; Article 509
Dear Mr. Parkinson:
In your letter dated April 27, 2010, you requested a ruling on the status of an iPhone case from Canada under NAFTA.
The submitted sample is an iPhone case constructed from molded plastic. It is specially shaped and fitted to contain, and designed to provide organization, storage, portability, and protection to, an iPhone device. The front of the case has a clear window for viewing the screen of the iPhone. The dimensions of the case are approximately 2.5" (W) x 4.5" (L) x 0.5" (D).
The applicable subheading for the iPhone case will be 4202.99.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other containers and cases, other, other, other. The general rate of duty will be 20 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 World Wide Web at http://www.usitc.gov/tata/hts/.
You have described the following scenario for production of the case. The body of the case will be manufactured in Canada with United States originating materials. The screen will be manufactured in the United States with United States originating polycarbonate film that is die cut in the United States and imported into Canada. The cover is fused to the screen in Canada in an injection molding process. The acoustic vents will be manufactured in the United States with United Stated originating materials. The vents are die cut in the United States and imported into Canada where they are installed onto the case and into the bottom end cap closure. The bottom end cap closure with be manufactured in China with Chinese originating materials. The bottom end cap closure and the top slider closure are imported from China and installed onto the cover in Canada.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under 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;
The case undergoes processing operations in Canada and the United States which are countries provided for under the North American Free Trade Agreement. As the top slider and bottom end cap are of non-NAFTA origin, neither rule (i) nor rule (iii) apply. Under rule (ii), the case at issue will be eligible for NAFTA preference if it qualifies to be marked as a good of Canada and if it is transformed in Canada so that the non-originating material undergoes a change in tariff classification described in subdivision (t) to General Note 12, HTSUS. For heading 4202, HTSUS, the appropriate subdivision (t), Chapter 42 rule states:
A change to subheading 4202.99 from any other chapter.
The cap closure and top slider are classified in Chapter 39 and the other components are NAFTA originating. Thus, based on the facts provided; the case described above qualifies for NAFTA preferential treatment. It will meet the requirements of HTSUS General Note 12(b)(ii)(A). The item will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements
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 Vikki Lazaro at (646) 733-3041.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division