CLA-2-:OT:RR:NC:2:226

Ms. Kimberly Whitworth
Maddocks Industrial Filter Division
663 Woodward Avenue
Hamilton, Ontario
L8H 6P3
Canada

RE: The tariff classification, NAFTA status and country of origin of a glass fiber panel filter assembled in Canada

Dear Ms. Whitworth:

In your letter, dated February 19, 2013, you requested a tariff ruling regarding the tariff classification, NAFTA status and country of origin for marking purposes of a product referred to as “Ashrae/fiberglass panel filter,” pt. #39-001981-02P. 

A sample was submitted with your ruling request. The sample was sent to our U.S. Customs and Border Protection Laboratory for analysis. Our laboratory has now completed its analysis.

In your letter you indicated that the central portion of this article (“Ashrae/fiberglass) consists of non-woven glass fibers. You stated that the glass fiber component of the product performs the filtering function of the article.

Our Customs and Border Protection Laboratory confirmed that the central portion of the article (the filter) consists of non-woven glass fibers in the form of glass wool. Folded sections of glass fiber material are separated by twine glued together with a plastic resin adhesive.

A plastics frame surrounds the panel.

The essential character of this article is imparted by the glass fiber component. The applicable subheading for the Ashrae/fiberglass panel filter will be 7019.90.5040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for glass fibers (including glass wool) and articles thereof…other: other. The rate of duty will be 4.3 percent 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/.

According to the information submitted with your ruling request, all the materials which comprise this product - including the glass fiber component - are made in the United States.

Your letter indicates that all the components are assembled in Canada.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the North American Free Trade Agreement (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.

Based on the facts provided, the Ashrae/fiberglass panel filter will qualify for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(i). It will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin the article.

Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations.

The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations. However, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11 (a) of the regulations indicates that the country of origin of a good is the country in which the good is wholly obtained or produced, the good is produced exclusively from domestic materials, or each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Section 102.20.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations - Section 102.11(a) - to the facts of this case, we find that the Ashrae/fiberglass panel filter is a good of the United States.

Since the marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), only requires that goods of foreign origin be marked with country or origin, there is no Customs requirement to mark a product when the country of origin is deemed to be the United States. . If you wish to mark this article with specific information about the U.S. origin of the product or its components, this issue must be addressed by the Federal Trade Commission (FTC).

U.S. Customs and Border Protection does not have the authority to rule on the propriety of specific marking referring to the United States. You may contact the FTC, Division of Enforcement, 6th & Pennsylvania Avenue, N.W., Washington, DC 20508, telephone number 202-326-2222, on the propriety of any marking referring to the U.S. origin of this product.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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 Jacob Bunin at (646) 733-3027.

Sincerely,

Thomas J. Russo
Director
National Commodity Specialist Division