CLA-2-57:OT:RR:NC:N3:349
Ms. Kathy A. Zimmer
Quality Customs Broker, Inc.
4464 South Whitnall Ave.
St. Francis, WI 53235
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a Brussels carpet from Canada; Article 509
Dear Ms. Zimmer:
In your letter dated April 3, 2014, received by this office this office on June 16, 2014, you requested a ruling on the classification and status of a Brussels carpet from Canada under the NAFTA. This request is made on behalf of Airworthy Aerospace.
You submitted a swatch of a Brussels woven carpet. The upper surface consists of multi-colored pile yarns. The pile yarns are made from 70 percent wool and 30 percent nylon. The non-pile or foundation portion of the rug consists of polypropylene yarns in the weft and polyester yarns in the warp. The rug is coated with a latex P.V.A. It will be imported in rolls.
The carpet in this prospective transaction will be woven in Canada. The only non-originating material is wool fiber from the United Kingdom. When it enters Canada the wool fiber is combined with originating nylon fiber and spun into a yarn. All of the other materials are stated to be products of Canada.
The applicable subheading for the carpet will be 5702.31.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides carpets and other textile floor coverings, woven, not tufted or flocked whether or not made up, including "Kelem", "Schumacks", "Karamanie" and similar hand-woven rugs: "Kelem", "Schumacks", "Karamanie" and similar handwoven rugs: other, of pile construction, not made up: of wool or fine animal hair: Wilton (including brussels) and velvet (including tapestry) floor coverings and floor coverings of like character or description. The general rate of duty will be 8 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;
The Brussels carpet undergoes processing operations in Canada which is a country provided for under the NAFTA. This product will be eligible for the NAFTA preference if it qualifies to be marked as a good of Canada and if it is wholly obtained or produced in the NAFTA territories or transformed in Canada so that the non-originating materials undergo a change in tariff classification described in subdivision (t) to General Note 12, HTSUSA. For heading 5702, HTSUS, the appropriate subdivision (t) rule states that:
A change to headings 5701 through 5705 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5308 or 5311, chapter 54, or headings 5508 through 5516; provided that for purposes of trade between the United States and Mexico, a good of chapter 57 shall be treated as an originating good only if any of the following changes in tariff classification were satisfied within the territory of one or more of the parties:
(a) A change to subheadings 5703.20 or 5703.30 or heading 5704 from any heading outside chapter 57 other than headings 5106 through 5113, 5204 through 5212, 5308, 5311 or any headings of chapters 54 or 55; or
(b) A change to any other heading or subheading of chapter 57 from any heading outside that chapter other than headings 5106 through 5113, 5204 through 5212, 5308, 5311, any heading of chapter 54 or headings 5508 through 5516.
The only non-originating component is the wool fiber from the United Kingdom and it undergoes the requisite change in tariff classification.
Based on the facts provided, the carpet described above qualifies for NAFTA preferential treatment, because it meets the requirements of HTSUS General Note 12(b)(ii)(A). The carpet will therefore be entitled to a FREE rate of duty under 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 John Hansen at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division