CLA-2-84:OT:RR:NC:N1:120
Ms. Karla Méndez
Filtros y Mallas Industriales, S.A. de C.V.
José Alvarado 1832 Col. Jardín Español
Monterrey, N.L., México, C.P. 64820
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of lint snares from Mexico; Article 509
Dear Ms. Méndez:
In your letter dated March 5, 2013, you requested a ruling on the classification and status of lint snares from Mexico under the NAFTA.
The subject merchandise, based on the submitted information and sample, are tubular-shaped lint snares of stainless steel wire mesh designed to filter the lint from the drained washing machine water as it exits through the discharge hose. A lint snare fits at the end of the drain hose of a washing machine and is secured by a nylon clamp.
Stainless steel wire (subheading 7223.00.10, Harmonized Tariff Schedule of the United States, HTSUS) is imported in 15 to 18 kg/spools from China into Mexico. In Mexico, a lint snare is manufactured by placing a wire spool on a knitting machine to produce a rolled mesh; then each roll is set on a sewing machine to be cut, and sewn with a nylon thread (heading 5402, HTSUS), of Mexican origin, to create the lint snare. After the nylon thread residues are removed, the lint snares are packaged in bulk form for export to the United States.
The country of origin determination is made pursuant to 19 C.F.R. 102.11, which states, in pertinent part, that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in §102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
19 C.F.R. 102.20 specifies that classification under HTSUS provision 8421 allows for a change to subheading 8421.11 through 8421.39 from any other subheading, including another subheading within that group. This tariff shift has been met. The country of origin of the lint snares is Mexico based upon meeting the tariff shift specified in C.F.R. 102.20. The applicable tariff provision for the lint snares will be 8421.21.0000, HTSUS, which provides for “Filtering or purifying machinery and apparatus for liquids: For filtering or purifying water.” The general rate of duty will be free.
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.
General Note 12(b)(ii)(A) indicates that the non-originating stainless steel wire must undergo a change in tariff classification in order for the lint snares, into which it is transformed, to be considered as originating goods. General Note 12(t)/84.53(A), HTSUS, describes the acceptable tariff classification change as "A change to subheadings 8421.19 through 8421.39 from any other heading.”
Based on the facts provided, the non-originating material, i.e., the stainless steel wire, has satisfied the change in tariff classification required (i.e., subheading 7223.00.10, HTSUS, to subheading 8421.21.00, HTSUS) under this HTSUS General Note. Thus, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods 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 Denise Faingar at (646) 733-3010.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division