CLA-2-40:OT:RR:NC:N1:101
Brian Kavanaugh, Trade Advisor
Deringer Logistics Consulting Group
173 West Service Road
Champlain, NY 12919-4441
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of retreaded Off the Road (OTR) or earthmoving tires from Canada; Article 509
Dear Mr. Kavanagh:
In your letter dated August 6, 2015, you requested a ruling on behalf of Pneus Lanoraie/LANOTR of Lanoraie, Quebec, Canada on the tariff classification and the status of retreaded OTR or earthmoving tires from Canada under the NAFTA.
You state that Pneus Lanoraie/LANOTR will use worn OTR or earthmoving tires called casings which were originally manufactured in several countries such as the U.S.A., Mexico, Brazil, France, Spain and Japan. The used OTR agricultural tires (casings) were imported into Canada under subheading Harmonized Tariff Schedule of the United States (HTSUS) 4012.20.4500 and the used OTR other earthmoving equipment tires (casings) were imported into Canada under subheading HTSUS 4012.20.8000. The casings will be retreaded in Canada and then exported to the United States.
As stated in your e-mail to this office on September 2, 2015, you noted that the material used to retread these tires while being processed in Canada originated in Germany, Peru, China and the majority coming from Bridgestone Canada (with the material supplied from the U.S.A.).
Retreaded tires made from the casings of tires manufactured in the U.S., Mexico or Canada, do qualify for preferential treatment under the NAFTA. This is so because, one or more of the originating materials used in the production of the tires will undergo the change in tariff classification required by General Note 12(t)/40.6, HTSUSA.
The applicable subheading for the retreaded OTR agricultural tires will be 4012.19.2000, HTSUS, which provides for “Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber: Retread tires: Other: Designed for tractors provided for in subheading 8701.90.10 or for agricultural or horticultural machinery or implements provided for in chapter 84 or in subheading 8716.80.10.” The general rate of duty will be Free.
The applicable subheading for the retreaded OTR, other radial tires will be 4012.19.4000, HTSUS, which provides for “Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber: Retread tires: Other: Other: Radial.” The general rate of duty will be 4%.
The applicable subheading for the retreaded OTR, non-radial tires will be 4012.19.8000, HTSUS, which provides for “Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber: Retread tires: Other: Other: Other.” The general rate of duty will be 3.4%.
You also inquire about the country of origin marking requirements for the imported tires which are retreaded in a NAFTA country (Canada) prior to being imported into the U.S.
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 retreaded tires are processed in a NAFTA country "Canada" prior to being imported into the U.S. Since "Canada" 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 retreaded tires are 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.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported retreaded tires are a good of Canada for marking purposes. Other country of origin information on the retreaded tires should be obliterated.
For marking requirements other than country of origin please request “an official interpretation of marking requirements” from the National Highway Traffic Safety Administration, Office of Chief Council; 400 7th Street SW, NCC01; Washington DC, 20590.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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, please contact National Import Specialist Matthew Sullivan at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division