CLA-2-38 OT:RR:NC:N2:235
Mr. David Rowat
TBF Environmental Technology Inc.
12255 King George Boulevard
Surrey, British Columbia
V3V 3K2
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of KradaSol, BerdeSol, and ShiraSol from Canada; Article 509
Dear Mr. Rowat:
In your letter dated September 4, 2015, you requested a ruling on the status of three items from Canada under the NAFTA. Your inquiry was submitted to the U.S. Customs and Border Protection laboratory for analysis. The analysis is now complete.
KradaSol, BerdeSol, and ShiraSol are three new products in the company’s line of VOC-compliant, environmentally friendly industrial solvents. The company website, and the submitted paperwork, indicate that the instant products are Environmentally Compliant Green Solvents (ECGS), and designed as VOC-and NPRI-Exempt, safe, effective replacements for toxic and polluting solvents in common industrial use. These ECG solvents are designed for use in the formulation of paints, coatings, adhesives, and printing inks. They may also be used to dissolve resins, urethanes, and certain polymers, and clean and degrease manufacturing operations. The products are mixtures that contain greater than 25% by weight of one or more aromatic or modified aromatic substances.
The applicable tariff provision for KradaSol, BerdeSol, and ShiraSol will be 3814.00.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers: Containing more than 25 percent by weight of one or more aromatic or modified aromatic substances.” The general rate of duty will be 6.5 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 nonoriginating 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.
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)(38)(16). 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 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, contact National Import Specialist Kimberly Praino at [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division