CLA-2-39:OT:RR:NC:N4:422
Ms. Margarita Malishkevich
RiJe Inc.
1 Royal Orchard Blvd.
Suite 1111
Thornhill, Ontario L3T 3C1
Canada
RE: The tariff classification, country of origin, marking and status under the North American Free Trade Agreement (NAFTA), of a plastic drinking vessel from Canada; Article 509
Dear Ms. Malishkevich:
In your letter dated September 19, 2012, you requested a ruling on the tariff classification, country of origin and status of a plastic drinking vessel from Canada under the NAFTA.
The submitted sample is identified as a RiJe Cup, Model CO01. This item is an unassembled
drinking vessel that is designed for people suffering with difficulty in swallowing, limited range of neck, head and arms movement or requiring predetermined doses of liquid. The item is comprised of a base, an upper tumbler section, two handles (one for each of two opposing sides), a rotatable cap, two o-rings and an adjusting key, all made of plastic and packaged together in a corrugated carton.
The applicable tariff provision for Model CO01 will be 3924.10.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tableware, kitchenware…of plastics: tableware and kitchenware: other. The general rate of duty will be 3.4 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/.
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 non-originating 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 base, upper tumbler section, two handles, rotatable cap, adjusting key and corrugated carton are all made in Canada and the components are packaged in Canada. The o-rings are non-originating and if imported separately would be classified in 3926.90.4510. For goods classified in heading 3924, General Note 12(t)(10) requires:
A change to headings 3924 through 3925 from any other heading, including another heading within that group, provided there is a regional value content of not less than:
(1) 60 percent where the transaction value method is used, or
(2) 50 percent where the net cost method is used.
You have indicated that the transaction value method will be used and the regional value content is not les than 60 percent. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12(t)(10). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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.
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.
Section 102.11 (a) of the regulations indicates that the country of origin of a good is the country in which:
The good is wholly obtained or produced;
The good is produced exclusively from domestic materials; or
Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Section 102.20…
Section 102.1(e) states that “foreign material” means a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.
Section 102.20(g) requires:
A change to heading 3922 through heading 3926 from any other heading, including another heading within that group.
Applying the NAFTA Marking Rules set forth in Section 102.11(a) and Section 102.20 of Part 102 to the facts of this case, we find that Model CO01 is a good of Canada for marking purposes.
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.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
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 Gary Kalus (646) 733-3055.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division