CLA-2-56:RR:NC:TA:350 B81472

Mr. Doug Dickson
Dickson Trawl's
162 Manor Place
Comox B.C., Canada
V9M-1C6

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for shrimp trawl fishing nets, from Canada; 19 CFR 102.21(c)(2); tariff shift; Article 509

Dear Mr. Dickson:

This is in reply to your initial letter of January 7, 1997 with subsequent correspondence and phone calls, requesting a ruling on the classification of Shrimp trawl fish nets that you produce in Canada. Your concern is whether these nets would be considered a product of Canada since you make the nets from raw material netting that you obtain from sources outside Canada or the United States. Further, during one of the phone conversations with this office, you asked the status under the NAFTA and a country of origin determination of these nets. We apologize for the delay in answering your request.

FACTS:

These Shrimp trawl nets are of your own design and manufacture. They vary in size and range in value from 4,500 to 10,000 Canadian dollars. The furnished photograph of a complete net shows a 50 foot length Beam Trawl with log guards. You also submitted a sketch of one of these nets showing the various components and how the numerous sections are put together. The trawls are "conical" or "wind sock" in general shape. The net samples, photograph and drawing were furnished in later correspondence.

You write that you import a special two ply twisted knotless polyethylene web from Japan. The net material is not of a raschel knit construction. You furnished a subsequent sample that was given to be 400D x 20 ply with a 1« in. center to center mesh. The "20 "is actually two twisted ply of 10 monofilaments each. You claim that this material is stronger and has less drag in the water than conventional knotted netting. The net material is of the kind that would be considered classifiable under HTS heading 5804 as tulles and other net fabrics, not including

woven, knitted or crocheted fabrics. In following correspondence you indicate other strand amounts and mesh size would be used. This would not affect the classification.

You also import knotted netting, originally from Taiwan, but in you recent correspondence indicate that you will be purchasing braided yarn knotted netting from Portugal. The submitted polyethylene knotted netting sample is of three ply, nine strands each, cordage with a total decitex of 15,230, which was ascertained by Customs laboratory analysis . It has a stretch mesh size of 1¬ inches. Such netting is classifiable under heading 5608 as knotted netting of twine, cordage or rope. The twine, cordage or rope of this heading, be it of braided or twisted strand construction, must measure more than 10,000 decitex.

The knotless netting makes up the top and sides of the trawl, whereas the knotted material makes up the belly. The man-made fiber netting is cut to size and shape and assembled in your plant. In addition, there are numerous other components such as wire rope, twine, rope, steel shackles, shackle clamps, rubber disks, rubber sole line bobbins and plastic floats that go into making up the trawl net. You indicate that these various items will be products of Canada, the U.S. and the floats from Iceland. The furnished breakdown of the components indicates that 55% of the value of the net is of Canadian origin, with 17% of U.S. content. The main feature of the trawl is the net materials, with the major portion, almost double in value, of these being the knotless netting, 16%, with 9% for the knotted netting and 3% for the floats.

ISSUE:

What is the classification, eligibility under NAFTA and country of origin of the subject merchandise?

CLASSIFICATION:

These shrimp trawl nets are classifiable under subheading 5608.11.0090, Harmonized Tariff Schedules of the United States (HTS), which provides for other made up fishing nets of man-made textile materials. The duty rate will be 13.4 percent ad valorem.

NAFTA ELIGIBILITY:

The non-originating materials used to make the trawl nets have satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/56. Therefore, the shrimp trawl nets will be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. The "Special" rates of duty column, showing "CA", under subheading 5608.11.0090 applies.

COUNTRY OF ORIGIN:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"

Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:"

HTSUS Tariff shift and/or other requirements

5608 (2) A change to fishing nets or other made up nets of heading 5608: (b) if the good contains nontextile attachments, from any heading, including a change from another good of heading 5608, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession

HOLDING:

As the good, containing nontextile attachments was assembled in a single country, that is, Canada, as per the terms of the tariff shift requirement, country of origin is conferred in Canada.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 George Barth at 212-466-5884.


Sincerely,

Robert B. Swierupski
Director,

National Commodity
Specialist Division