CLA-2 CO:R:C:T 955869 HP
Ms. Pat Flynn
Senior Consultant
Tower Group International, Inc.
128 Dearborn Street
Buffalo, New York 14207-3198
RE: Street hockey equipment. NAFTA preference denied.
Dear Ms. Flynn:
This is further to your letter of September 9, 1993. That
letter concerned the tariff classification, under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA), of
street hockey equipment, produced in China and Canada. Please
reference your client FRIKON of Mississauga, Ontario.
FACTS:
The merchandise at issue consists of street hockey sports
equipment: goalie pads, goalie blocker pads (gloves with pad)
made of either nylon or a nylon/leather combination, and goalie
trappers (gloves) also made of either nylon or a nylon/leather
combination. In HRL 955201, we classified this merchandise under
the HTSUSA. In addition to a classification decision, you
originally requested a U.S.-Canada Free Trade Act eligibility
determination for the goalie pads. In your facsimile dated
January 18, 1994, you changed this request to an eligibility
determination under the North American Free Trade Agreement
(NAFTA). The NAFTA eligibility determination will now be ad-
dressed.
ISSUE:
Whether the goalie pads qualify for duty preference under
the North American Free Trade Agreement?
LAW AND ANALYSIS:
The NAFTA eliminates tariffs on most goods originating in
Canada, Mexico and the United States over a maximum transition
period of fifteen years. Generally, tariffs will only be elimi-
nated on goods that "originate," as defined in Article 401 of the
NAFTA. Article 401 defines "originating" in four ways: (a) goods
wholly obtained or produced in the NAFTA region; (b) goods
produced in the NAFTA region wholly from originating materials;
(c) goods meeting the Annex 401 origin rule; and (d) unassembled
goods and goods classified with their parts which do not meet the
Annex 401 rule of origin but contain 60% regional value content
using the transaction method (50% using the net cost method).
As we described in HRL 955201, the goalie pads are assembled
in Canada from a Canadian foam pad and a Chinese outer shell, a
"non-originating" good. Accordingly, the pads are not considered
originating through methods (a) or (b), supra. Article 401(b) of
the NAFTA indicates that goods may "originate" in Canada, Mexico
or the United States, even if they contain non-originating
materials, if the materials satisfy the rule of origin specified
in Annex 401 of the NAFTA. The Annex 401 rules of origin are
based on a change in tariff classification, a regional value-
content requirement, or both.
Upon importation into Canada, the pad shell is already
shaped, stitched, and screen printed with an identifying logo.
Once in Canada, it is merely stuffed with the polyurethane foam
pad and, we assume, stitched closed. It is our opinion that the
shell, at the time of its importation into Canada, is an unfin-
ished goalie pad, and would be classified on its own within
subheading 9506.99, HTSUSA. Annex 401 states that for a good
classifiable in subheadings 9506.40 - 9506.99 to be considered
originating, it must undergo a change to those subheadings from
any other chapter. Since they do not, and since they are not
unassembled goods or goods classified with their parts, the
goalie pads are not considered originating. Accordingly, duty
preference under the NAFTA is denied.
HOLDING:
As a result of the foregoing, the instant merchandise is
classified under subheading 9506.99.6080, HTSUSA, as other sports
equipment. The applicable general rate of duty is 4.64 percent
ad valorem.
This ruling letter is being issued pursuant to section 181,
Subpart I, of the Customs Regulations, 19 C.F.R. 181.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division