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