CLA-2-56:RR:NC:N3:351 K88845

Harold Averill
Corrigan Dispatch Co.
Box 3610
1350 Cheers Blvd.
Brownsville, TX 78523-3610

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of nets from Mexico; Article 509

Dear Mr. Averill:

In your letter dated August 24, 2004, you requested a ruling on the status of netting for sports facilities and commercial fishing nets from Mexico under the NAFTA.

You submitted a sample of the netting from which the nets are manufactured. It is knotted netting of a twisted cord that you say is nylon, with 2” mesh. The netting is imported into Mexico from Indonesia, Thailand, or China. The netting will be made up into nets for batting cages, batting practice nets, barriers at golf driving ranges, or other protective uses. None of the uses are actually game-related (as tennis or goal nets would be, for example). You also submitted a brochure showing various commercial fishing nets into which the netting may be made up; none appear to be for hand-casting.

In Mexico, the netting is cut to size and shape and made up by adding a rope border (the rope is manufactured in China) or grommets, snaps, or rings, as required. In addition, the finished nets may be UV treated. The fishing nets may have floats sewn to the top and weights sewn to the bottom.

The applicable tariff provision for the protective batting cage and driving range nets will be 5608.19.2090, Harmonized Tariff Schedule of the United States Annotated (HTSUS), which provides for “Knotted netting of twine, cordage, or rope; . . . other made up nets, of textile materials: Of man-made textile materials: Other: Other: Other.” The general rate of duty will be five percent ad valorem.

The applicable subheading for the commercial fishing nets will be 5608.11.0090, HTSUS, which provides for “Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials: Of man-made textile materials: made up fishing nets, Other.” The general rate of duty will be eight percent ad valorem.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note (GN) 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(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 subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

The nets in question do not qualify for preferential treatment under the NAFTA because none of the above requirements are met. The raw materials from Indonesia, Thailand, and China are not originating. General Note 12(t), HTSUS, requires, for goods classified in Chapter 56, HTSUS,

A change to headings 5601 through 5609 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, or chapters 54 through 55.

As the netting imported into Mexico is classifiable in heading 5608, HTSUS, the tariff change required by GN 12(t) is not met.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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 Mitchel Bayer at 646-733-3102.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division