CLA-2 CO:R:C:F 951921 ALS
Mr. Dallas Miner
American Fishing Tackle Manufacturers Association
One Thomas Circle
Suite 900
Washington, DC 20005
RE: Fishing Lures; Inquiry Pursuant to Section 1516, Title 19,
United States Code
Dear Mr. Miner:
This is in reference to your request for information
regarding the importation of certain fishing lures imported from
Canada. We have considered your request pursuant to the
provisions of section 1516, title 19, United States Code and
section 175.1, et seq. of the Customs Regulations (19 CFR 175.1,
et seq.).
FACTS:
The articles in question are fishing lures composed of
fishing hooks manufactured in either Norway or France affixed to
metal, plastic or wood artificial bait manufactured in Canada.
ISSUES:
What is the tariff classification of fishing lures produced
in Canada?
Are fishing lures composed of a fishing hook manufactured
outside of Canada which is combined with various types of
artificial bait manufactured in Canada eligible for special
tariff treatment under the United States - Canada Free Trade
Agreement (CFTA)?
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LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is governed by the General Rules
of Interpretation (GRI's). GRI 1 provides that classification is
determined first in accordance with the terms of the headings and
relative section and chapter notes. If GRI 1 fails to classify
the goods and if the heading and legal notes do not otherwise
require, the remaining GRI's are applied taken in order.
The articles under consideration are composed of two
elements. One element, artificial bait, classifiable under
subheading 9507.90.7000, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), is manufactured in Canada. The other
element, fishing hooks manufactured in Norway or France, is
classifiable under subheading 9507.20.8000, HTSUSA, in their
condition as imported into Canada. The hooks are imported into
Canada where they are combined with the artificial bait.
Since each of the subheadings refers to only a part of the
article, it is not classifiable under GRI 1. We must refer to
GRI 3 which provides for the classification of composite
articles. That GRI provides that composite articles are
classified as if they consisted of the material or component
which gives them their essential character. Since the hook could
not perform its ultimate function without the lure, we believe
that the lure imparts the essential character to the article and,
therefore, both components would be classified as if the article
consisted solely of the lure.
We next considered the eligibility of the article for
treatment under the CFTA. To be eligible for tariff preferences
under the CFTA, goods must be "originating goods" within the
rules of origin in General Note 3(c)(vii)(B)(1) or (2), HTSUSA.
Under (1) articles may be considered "goods originating in...
Canada" if they are wholly obtained or produced in the territory
of Canada and/or the United States or (2) if they are transformed
in the territory of Canada and/or the United States.
The completed fishing lures include hooks from third
countries and are not products wholly obtained or produced in
Canada pursuant to (1) above. We, therefore, must consider
whether the product has been transformed in the territory of
Canada as provided in (2) above. In order to be so considered an
article made of foreign materials must be transformed in Canada
and/or the United States in accordance with General Note
3(c)(vii)(B)(2), HTSUSA. A transformation is evident when a
change in tariff classification occurs as provided in General
Note 3(c)(vii)(R), HTSUSA.
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General Note 3(c)(vii)(R)(20), HTSUSA, covering goods
provided for in Chapter 95, HTSUSA, generally provides that such
a transformation occurs when there is (20)(aa) a change from one
chapter to another or (20)(bb) a change to any heading from a
parts heading or to any subheading from a parts subheading. The
article under consideration does not meet those requirements.
The fish hook, as previously noted, is classifiable under
subheading 9507.20.8000, HTSUSA, and the artificial bait is
classifiable under subheading 9507.90.7000, HTSUSA. The
completed lure, as exported to the United States from Canada, is
classifiable under subheading 9507.90.7000, HTSUSA. Since a
change in classification, as specified above, does not occur,
i.e., the fish hooks do not change classification from one
chapter to another nor do they change classification from a parts
heading or subheading, the requirements for treatment under the
CFTA have not been met.
Whenever the assembly of goods in the territory of Canada
fails to result in a change of tariff classification they cannot
be treated as goods originating in the territory of Canada for
the purposes of the CFTA. Therefore, fishing lures assembled in
Canada with hooks from a third country are not eligible for
reduced tariff treatment when imported into the United States.
HOLDING:
The fishing lures under consideration are not considered as
goods originating in the territory of Canada for purposes of the
CFTA. They are classifiable under subheading 9507.90.7000,
HTSUSA, and are subject to a general rate of duty of 9 percent ad
valorem.
This represents the official position of the U.S. Customs
Service. If your wish to challenge this decision, you may do so
by filing a petition pursuant to sections 175.11 and 12, Customs
Regulations (19 CFR 175.11,12).
Sincerely,
John Durant, Director
Commercial Rulings Division