CLA-02 RR:CTF:VS H004685 HEF
Mr. Brett Greedy
Tradewin
P.O. Box 1026
Tullamarine, Victoria 3043
Australia
Re: Eligibility for UAFTA Preference for certain home sewing machine furniture
Dear Mr. Greedy:
This is in response to your letter dated December 6, 2006, requesting a binding ruling on behalf of Horn Australia, as to whether certain imported home sewing machine furniture would qualify for preferential tariff treatment under the United States Australia Free Trade Agreement (“UAFTA”).
FACTS:
The subject merchandise is sewing furniture cabinetry utilized in the home by persons who have a requirement for a sewing machine and ancillaries to be contained in one unit or desk. Horn Australia intends to import the following home sewing machine furniture models into the United States from Australia: Koala Outback Plus, Koala Cub O/L, Koala Cub, Quiltmate III Chest with Leaf, Koala Craft Centre Pro, Koala Craft Centre, Koala Stow 7C Outback, Koala Storage Pro Plus 02, Koala Quiltmate III, Koala Rollabout, Koala Sewmate Plus II, Sewmate III, Koala Display, Koala Outback Junior, Koala Treasure Chest, Koala Treasure Chest Plus II, Koala Lite Q530, Koala Outback Plus II, Koala Club Plus 02, Koala Lite Q330, Koala Lite Q430, Koala Lite Q230, Koala Lite Q130, and Koala KCSTOR5. You state that all of these models are classified in subheading 8452.40 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
You advise that the goods are manufactured from Australian parts and materials, with the exception of certain hardware and medium density fiberboards that are sourced internationally. A bill of material for each model was included in your submission. The bills of material specify the parts used in each model as well as their quantities, origin, and classification. For example, the countries of origin of the foreign (non-Australian) components of the Koala Outback Plus and their tariff classifications under the HTSUS are:
PART
COUNTRY OF ORIGIN
HTSUS
Board MDF
Australia/Malaysia
4410.90
Edging Unglued
Germany
3920.49
Edging Pre-glued
Germany
3920.49
Foil Edging
Germany
7606.92
Piano Hinge
Taiwan
8302.10
Castor Bracket
Taiwan
8302.50
3.5*13 Screws
Taiwan
7318.12
3*14 Screws
Taiwan
7318.12
3.5*15 Screws
Taiwan
7318.12
Horn Lock
Germany
8301.40
T Nuts
Taiwan
7318.16
Flush Hinge
Taiwan
8302.10
Wrap Around Hinge
Taiwan
8302.10
50 mm Butt Hinge
Taiwan
8302.10
3.5*14 C/S Flap Screw
Taiwan
7318.12
3.25 Screws
Taiwan
7318.12
Koala Toy
China
9503.90
Non-lock Castors
China
3926.90
Lockable Castors
China
3926.90
Brass Key
Germany
8205.59
Spanner
Taiwan
8204.11
Gold Bow Handles
Taiwan
3926.90
Extension Castors
China
3926.90
250 mm Ball Bearing Runners
China
8482.80
The materials and parts are delivered to Horn Australia, where the furniture is manufactured to the required specifications. Then, the goods are flat packed for shipment to the United States.
ISSUE:
Whether the imported home sewing machine furniture described above is eligible for preferential tariff treatment under the UAFTA.
LAW AND ANALYSIS:
The United States-Australia Free Trade Agreement was signed on May 18, 2004, and entered into force on January 1, 2005, as approved and implemented by the UAFTA Implementation Act, Pub. L. 108-286, 118 Stat. 919 (August 3, 2004).
General Note (“GN”) 28(b), HTSUS, provides, in pertinent part:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m), and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UAFTA country under the terms of this note only if --
The good is a good wholly obtained or produced entirely in the territory of Australia or of the United States, or both;
the good was produced entirely in the territory of Australia or of the United States, or both, and --
each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note;
the good otherwise satisfies any applicable regional value content requirement referred to in subdivision (n) of this note; or
the good meets any other requirements specified in subdivision (n) of this note;
and such good satisfies all other applicable requirements of this note….
As all of the materials and components do not originate from Australia or the United States, these products would not be considered to be “wholly obtained or produced” as set forth in GN 28(b)(i). Therefore, we must determine whether the home sewing furniture models would satisfy the applicable change in tariff classification. You state that every home sewing furniture model is classified in subheading 8452.40, HTSUS. The applicable rule set forth in GN 28(n) is:
A change to subheadings 8452.30 through 8452.40 from any other subheading.
For purposes of this ruling, we assume that the classifications stated above and the classifications submitted for the other models and parts listed in the bills of material are correct. Each part of foreign origin from the Koala Outback Plus satisfies the applicable change in tariff classification set forth in GN 28(n). Similarly, based on the facts provided, all of the nonoriginating materials from the other models satisfy the applicable change in tariff classification set forth in GN 28(n). Therefore, the subject merchandise would be considered originating under the USAFTA when imported directly into the United States.
HOLDING:
Based on the information provided, the home sewing machine furniture models are eligible for preferential tariff treatment under the USAFTA when imported directly into the United States.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents are filed without a copy, this ruling should be brought to the attention of the Customs and Border Protection officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch