CLA-2-63:OT:RR:NC:N3:351
Craig Fisher
Mustang Survival Corp.
3810 Jacombs Road
Richmond B.C. V6V 1Y6
Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a lifejacket from Canada; Article 509
Dear Mr. Fisher:
In your letter dated July 13, 2009, you requested a ruling on the status of a lifejacket from Canada under the NAFTA.
You have submitted a lifejacket, product code MD3084. The label describes it as a “sailing harness” and implies that it is to attach the wearer to the boat while he or she is working on deck.
The lifejacket is U-shaped and is worn over the neck, extending to just below the waist. It has no back, only an adjustable harness of 1½”-wide webbed belts. Inside the lifejacket is a bladder that inflates automatically within ten seconds of contact with the water by means of a carbon dioxide cartridge also sewn into the lifejacket. The bladder is sewn in 7” up from the bottom; the rest of it is sealed in with hook-and-loop fastener strips to allow it to expand upon inflation. There also is an oral inflation valve, a plastic inflation tab on a cord, and a whistle. At the waist is a plastic buckle to adjust the harness, and two large stainless steel D-rings.
The fabric housing the inflatable bladder is a coated fabric of Chapter 59, Harmonized Tariff Schedule of the United States (HTSUS). The balance of the fabric of the body of the lifejacket is woven nylon fabric classified in Chapter 54.
The applicable subheading for the lifejacket will be 6307.20.0000, HTSUS, which provides for other made up articles: Lifejackets and lifebelts. The general rate of duty will be 4.5% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 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 rule for subheading 6307, HTSUS, in GN 12(t)/63(4) states:
A change to headings 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.
Chapter Rule 1 of GN 12(t), Chapter 63, states:
For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for the good.
“The component that determines the tariff classification of the good,” in the language of the above rule for heading 6307, is all of the textile fabric, which includes the fabric that seals the inflatable bladder, as you state in your letter. Thus, in this case, we need to determine if both of the textile fabrics satisfy the above requirements.
The coated fabric, which is classified in Chapter 59, meets the requirement of the tariff shift. However, the other fabric component, the woven nylon fabric of Chapter 54, is not allowed under GN 12(t)/63(4) and does not meet the terms of the tariff shift. Therefore, the lifejacket is not entitled to a free rate of duty under NAFTA.
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, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division