CLA-2-85:RR:NC:1:108 H89361
Ms. Fusae Nara
Pillsbury Winthrop
One Battery Park Plaza
New York, NY 10004-1490
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of televisions from Mexico; Article 509
Dear Ms. Nara:
In your letter dated February 22, 2002, on behalf of your client Sharp Electronics Manufacturing Company of America, you requested a ruling on the status of televisions from Mexico under the NAFTA.
The items in question are television receivers that are produced in Mexico from both originating and non-originating components. The television receivers are denoted as the Sharp television receivers, models 29SL82 and 36RS450. They are described as non-projection type television receivers that incorporate a color picture tube (CRT) designed for direct viewing with respective screen diagonals of 29 and 36 inches.
To be eligible for tariff preference under the NAFTA, goods must be “originating goods” within the rules of origin in General Note 12(b), Harmonized Tariff Schedule of the United States (HTSUS). In this case, pursuant to general Note 12(b)(ii) the television sets imported into the United States may be originating if:
(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 subdivision r, s and t where no change in tariff classification is required, and the goods satisfy all other requirements of this note.
It is the opinion of this office that the non-originating components have been transformed in the territory of Mexico, in accordance with General Note 12 (b)(ii)(A).
The applicable tariff provision for the 29 inch color television set, model 29SL82, will be 8528.12.3250, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for; Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; Color: Non-high definition, having a single picture tube intended for direct viewing (non-projection type), with a video display diagonal exceeding 35.56 cm: Other … Other, with a video display diagonal: Exceeding 52 cm but not exceeding 77 cm. The general rate of duty will be 5 percent ad valorem.
The applicable subheading for the 36 inch color television set, model 36RS450, will be 8528.12.3290, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for; Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: Non-high definition, having a single picture tube intended for direct viewing (non-projection type), with a video display diagonal exceeding 35.56 cm: Other … Other, with a video display diagonal: Exceeding 77 cm. The general rate of duty will be 5 percent ad valorem.
Both models will be produced using both originating and non-originating components. The cathode ray tube is of United States origin and the chassis will be produced by populating a bare printed circuit board with originating components. Also certain non-originating printed circuit boards are added to the chassis of the television receivers in order to complete the production process. These boards are described as:
A. A cathode ray tube PCB which functions to sufficiently amplify the video signal. It does not have a video signal processing function.
B. A picture-in-picture PCB which allows the display of a second picture within the main picture displayed on the screen. This PCB does not have an amplification function.
C. An AV Comb PCB that has the function of separating video signals for color and brightness. This PCB does not have a video amplification function.
D. A multi-track sound stereo PCB. This functions as an audio wave detector. This PCB does not have an amplification function.
E. A front AV PCB, which affixes the audio, video and remote control, jacks to the TV chassis. It has no signal processing capability.
F. A sub-power PCB which alters the 110V alternating current to 220V direct current electricity.
The NAFTA rule of origin for products classified under 8528.12.32 is set forth in General Note 12(t)/85.85. It states: A change to tariff items 8528.12.28 or 8528.12.32 from any other heading, except from tariff items 8529.90.43, 8529.90.46, 8529.90.49 or 8540.11.10 or more than one of the following:
(A) Tariff item 7011.20.10
(B) Tariff item 8540.91.15
Based upon the supplied information concerning the non-originating PCBs functioning capabilities, denoted above, it is the opinion of this office that none of the originating components are classified in the excepted provisions specified in the above referenced note.
Each of the non-originating materials used to make the 29 and 36-inch television sets has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/85.85. The television sets will 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 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 Michael Contino at 646-733-3014.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division